Numerous sources reported on Monday February 3 that United Kingdom based Rexam, a publicly traded company that has interests in numerous industries, put specialises in production of packaging, has agreed a deal to sell two parts of its healthcare division to London headquartered Europe-wide private equity (PE) firm Montagu Private Equity.
Details of the deal, which have been posted on the Rexam website confirming source reports from sites including Reuters and the Wall Street Journal, will see Montagu pay $805million in cash for the pharmaceutical devices and prescription retail packaging operations within the healthcare business, with no leveraged debt or any other secondary factors involved at all.
The deal will see these two divisions taken private, and as a result shareholders of Rexam will share an estimated £450million between them. This is not the first time Montagu have turned their attention to healthcare related investments, with recent industry acquisitions including Hungary based Euromedic International, in 2008, Germany’s BSN Medical, following a €1.8billion deal in 2012, and United Kingdom based CliniSys in 2013.
Although Montagu don’t actively target specific industries, their quest for those with the most growth and profit potential brings them to a healthcare sector that is always open for the savvy investor or PE firm.
While the healthcare businesses are profitable, and Rexam are in talks with unnamed parties regarding the sale of the third and final part of this division, the company stated this sale was part of their “long term strategy to maximise shareholder value.”
In a statement on the Montagu website, Sylvain Berger-Duquene, Director, Head of France and Germany at Montagu Private Equity, said, “Healthcare Devices and Prescription Retail are both market leaders in attractive industries with defensive characteristics.
We have been impressed by the development of the business in recent years and look forward to working with the management team to support their future growth plans.” The deal is expected to be finalised and concluded by the middle of 2014.