Rexam to buy former RusAl beverage can business

Global packaging giant Rexam announced it has agreed to buy Rostar, the Russian beverage can maker, from EN+ Group, the parent of Russian aluminium group UC RUSAL, for $297m. 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 US$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," Rexam said, adding: "Profits, however, are expected to improve in 2007." Commenting on the acquisition, Leslie Van de Walle, Rexam's CEO, said: "The acquisition of Rostar is fully in line with our emerging markets strategy and represents an excellent opportunity for Rexam. We have been in Russia for over 10 years, and the acquisition, along with our new greenfield plant in Argayash and the investment in new lines at our existing plant, positions us well in this growth market."