Montagu Said to Hold Exclusive Talks on $823 Million Rexam Units

Montagu Private Equity LLP is in exclusive talks to buy the Rexam Plc units offering prescription retail products and devices, according to three people familiar with the matter.

London-based Montagu entered into exclusive talks this week and a deal could be reached as early as this month, said the people, who asked not to be identified because the negotiations are private. The assets may fetch about 500 million pounds ($823 million), according to two of the people.

The businesses are part of Rexam’s health-care unit and the company plans to sell the remainder of the division, offering containers and closures, in a separate deal, one of the people said. Representatives for Rexam and Montagu declined to comment.

Rexam, the world’s biggest drinks-can maker, said in June it had received interest from potential buyers for the health-care unit, which has more than 3,000 staff and 15 factories on three continents and makes packaging for pharmaceuticals. By divesting the business, London-based Rexam could focus on beverage-can production, which accounts for about 90 percent of sales.

Rexam’s health-care packaging division includes products ranging from tubes, tablet dispensers, dosing systems for nasal sprays and eye drops to components for insulin pens and diagnostic instruments for medical applications, according to its website.

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