Feb 23 2006
Rexam, the global consumer packaging group and the world's leading beverage can supplier, announces that it intends to launch a public offer to acquire Airspray NV ("Airspray"), the world leader in the manufacture of foam pumps, listed on Euronext, Amsterdam.
The intended offer for Airspray will be made by Rexam Plastics Nederland BV, a subsidiary of Rexam. The value of the intended offer is €146m based on the offer price of €26.75 per share, which represents a premium of 17% relative to the closing price of €22.85 per share on 21 February 2006, the last day of trading for Airspray shares prior to this announcement. The intended offer price excludes Airspray's proposed final dividend of €0.75 per share for the financial year 2005.
When launched, the offer will be fully recommended by the Boards of Airspray. It is expected that the offer memorandum will be published in April 2006, subject to satisfaction of certain conditions including regulatory clearance. The transaction is expected to close during the second half of May 2006.
The transaction is expected to be earnings enhancing for Rexam from the outset and will be financed in cash from existing borrowing facilities.
In 2005, Airspray had sales of €46m, operating profits of €8.9m. As at 31 December 2005, it had net operating assets of €34m and virtually no net borrowings. In the five years to the end of 2005, Airspray reported revenue growth and operating profit growth at average annual compound rates of 16% and 11% respectively.
Foam pumps, which are dispensers that transform liquid into foam at the point of dispensing, account for the vast majority of Airspray's sales. The global market for foam pumps has grown at an average annual compound growth rate in excess of 20% over the last five years. The main applications for these pumps are in beauty and personal care packaging, including hair care, skin care, sun care and liquid soaps, together with household products such as dish detergent. Key customers include Procter & Gamble, The Dial Corporation and Bath and Bodyworks Inc.
Airspray has two manufacturing sites, one in the Netherlands and one in the US. In all, it employs around 140 people.
Lars Emilson, Rexam's Chief Executive, commented: "Airspray is an innovative, high growth business based on patented technologies and know-how. The acquisition is a further step in the expansion of our Plastic Packaging operations and will broaden our dispensing systems product offering globally. We also see substantial synergies in marketing, purchasing and manufacturing, with longer term potential to develop new pump products and ranges."