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.
Rexam CEO Lars Emilson says the company will finance the offer in cash from existing borrowing facilities and says he expects the transaction to be earnings enhancing from the outset.
"Airspray is an innovative, high growth business based on patented technologies and know how,” says Emilson. “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."
In 2005, Airspray had sales of €46m, operating profits of €8.9m. As at December 31, 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 per cent and 11 per cent 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 per cent 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.