Rexam, the consumer packaging company and beverage can maker, is to acquire Rostar, the Russian beverage can maker, from En+ Group Limited, the parent of Rusal, the Russian aluminium group, for $297m in cash.
The acquisition, which requires regulatory approvals, including approval from the Federal Antimonopoly Service of the Russian Federation, is expected to be completed during the fourth quarter of 2007.
Rostar has two manufacturing facilities: one near Moscow and one near St Petersburg. The Moscow plant, which includes an end-making facility, has an annual capacity of some 1.3bn beverage cans, while the St Petersburg plant has a capacity of 1.7bn beverage cans.
In 2006, Rostar had sales of $214m. As Rostar was part of Rusal, it did not 'hedge' its aluminium exposure and, in common with the rest of the European beverage can industry, 2006 profits were adversely impacted by aluminium price volatility. Profits, however, are expected to improve in 2007.
On December 31 2006, Rostar had net operating assets of $181m.
Engineering industry reacts to Reeves' budget
I´d have to say - ´help´ - in the longer term. It is well recognised that productivity in the UK lags well behind our major industrial competitors and...