Rexam expands into Polish glass

Date: 20 February 2004
Source: Beveragedaily.com

Date: 20 February 2004

Rexam, the UK-based global consumer packaging company, has confirmed the acquisition from Dutch group Hunan of all of the shares in Poland Glassworks Holding, the holding company of Polish glassworks, Polglass.

Rexam said that it had acquired the company a cash consideration of £10 million, which also included the assumption of outstanding debts and that the transaction would be subject to working capital and other adjustments.Based on 2003 results for Polglass, the purchase price represents a multiple of 5.2 times EBITDA.Rexam said that, according to its forecasts, the business was expected to exceed cost of capital within the first financial year.

Polglass primarily supplies coloured bottles to Polish brewers, with the majority of sales going to Heineken's Polish subsidiary, Zywiec.

Rexam already has a flint glassworks in Poland located in Gostyn and the acquisition takes Rexam to the number two position in the Polish glass market with a 20 per cent share.

Commenting on the announcement, Rolf Borjesson, Rexam's chief executive, said: “Following our recent announcement of a glass acquisition in the Netherlands, this latest transaction shows our commitment to building our position in the north European glass industry. It opens new market opportunities for us in the beverage segment in Poland and gives us a base for further consolidation and synergies.”

With Poland due to become apart of the EU on 1 May, the acquisition is a good strategy deal in light of the new opportunities that enlargement presents. Poland is by far the largest agro-food producer of the ten accession states, and many industry observers also believe that it shows the most potential.

On top of that, glass packaging is still very popular within the region, as alternatives such as aluminium and PET have not caught on as fast as in western Europe. Overall, the volumes of packaging remain small too, with Poles using less than half the volumes compared to that of their western European counterparts.
600450 Rexam expands into Polish glass glassonweb.com

See more news about:

Others also read

MORE...

R.O. has designed and produced a powerful Parametric Shape management system
The glass sector has the increasingly widespread requirement of having an unlimited catalogue of parametric shapes and creating new ones in a simple way without being an expert in the field.
Shoaib Akhtar to endorse Asahi Glass
Shoaib Akhtar is going to be back on Indian TV screens. He is going to be featured in the new TV ad campaign for Asahi Glass.
Glass Confusion to start Beginning Fusing Classes
Glass Confusion is starting the New Year with Beginning Fused Glass group classes. The three-week course will be held Wednesdays from 10 a.m. to 1 p.m. and again from 5 p.m. to 9 p.m.
DisplaySearch: Global glass-substrate capacity to grow 40% each quarter
Worldwide glass-substrate capacity is expected to continue to grow more than 40% each quarter through 2005, as a result of capacity expansion by existing glass-substrate suppliers and new companies joining the market, according to DisplaySearch.
Western Pennsylvania glass industry going the way of steel
Western Pennsylvania’s once-thriving glassmaking industry is dwindling, as did the domestic steel industry and for many of the same reasons: competition and cost.
Barcelona: world’s first ‘UV-breathable’ laminated glass
Architects Robert and Esteve Terradas of Barcelona describe the city’s newly-renovated and expanded (45,000 m2) Science Museum (completed September 2004) as "a living museum that will set new standards in terms of transparency - a very modern construction that will enable the plants and animals inside to really live and breathe." The project was made possible by the use of an innovative grade of DuPont™ SentryGlas© Plus™ structural interlayer that is "UV-breathable, on the flat roof of an Amazonian rainforest exhibit".The UV-breathable 938 m2 laminated glass roof is rectangular in shape.

Add new comment