Create a free Manufacturing.net account to continue

Rexam Considers Acquiring Owens Illinois Plastics Unit

British packaging company in talks to buy O-I Plastics, maker of plastic prescription bottles, tamperproof closures and plastic medical devices.

NEW YORK (AP) - British packaging company Rexam PLC confirmed Friday it is in talks with health care packaging and specialty closure systems maker Owens Illinois Inc. about the possible acquisition of its plastics unit.
 
Owens Illinois said in January that it may sell the division, named O-I Plastics, as a way to maximize value for shareholders. The unit makes plastic prescription bottles, tamperproof closures and plastic medical devices.
 
O-I Plastics posted revenue of about $770 million in fiscal 2006.
 
Rexam said in a statement if a deal was reached, the transaction would only take place if conditions meet its investment returns criteria.
 
The acquisition would likely be funded through a combination of proceeds from the $868 million sale of its glass business, debt and equity. In March, Rexam announced it would sell the unit to Dublin-based Ardagh Glass.