Germany's Gerresheimer AG on Wednesday said that it has lost interest in the healthcare packaging unit of Rexam PLC. Gerresheimer manufactures medical supplies including pill bottles and syringes.
Reuters, citing a statement made by sources last month, said Gerresheimer was competing against US packaging companies Berry Plastics Group Inc. and Silgan Holding Inc. to buy Rexam's packaging business. The buyout deal is expected to fetch a little less than USD1 billion. Private equity firms Bain Capital LLC and KKR & Co. LP had also put in offers, the report said.
A Gerresheimer spokesperson confirmed that the company has dropped out of the bid. German news daily Handelsblatt quoted Gerresheimer's chief executive, who said the Rexam unit did not fulfill its acquisition criteria, Reuters said.
Rexam said in June that it would sell its healthcare business, which makes medical packaging and drug delivery devices. The unit accounts for about 10% of Rexam's sales, the report said.
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