Rexam Plc, the biggest beverage-can maker, agreed to sell its Personal Care operations to two separate buyers for a total of $709 million.
Sun Capital Partners Inc., a buyout firm in Boca Raton, Florida, and Silgan Holdings Inc., the Stamford, Connecticut-based producer of packaging products, will purchase different parts of the division, Rexam said in a statement today.
A unit of Sun Capital made a binding offer to buy Rexam’s cosmetics, toiletries and household care products business for $459 million in cash, according to the statement. A unit of Silgan has agreed to buy Rexam’s High Barrier Food packaging business for $250 million, it said.
Rexam plans to return about 370 million pounds ($580 million) from the sale to shareholders, it said. Rexam gained 2.3 percent to 433.5 pence by the close of trading in London, a fifth day of gains and the longest winning run since November.
The company is seeking to complete the sale to Silgan in the third quarter and the transaction with Sun Capital in the fourth quarter, according to the statement.
Rexam, which makes cans for Coca-Cola Co., Anheuser-Busch InBev NV and PepsiCo Inc., tripled 2011 net income after selling its closures unit, a maker of seals for drink containers, to Berry Plastics Corp. for $360 million. The London-based company announced plans to sell the Personal Care unit in November.
The Personal Care sale may allow for acquisitions or the return of cash to shareholders through dividends or buybacks, Chief Executive Officer Graham Chipchase said Nov. 17.