Packaging maker Rexam said it would sell bulk of its healthcare business to Montagu Private Equity for $805 million in cash.
The beverage can maker said on Monday it had received a binding offer from the private equity firm for the purchase of its pharmaceutical devices and prescription retail packaging units.
Rexam intends to return about 450 million pounds ($740 million) to shareholders from the proceeds of the sale.
Reuters reported in January, citing sources, that Montagu Private Equity was in talks with the British beverage can maker to purchase most of its healthcare business.
Pharmaceutical Devices and Prescription Retail Packaging units account for about 85 percent of earnings before interest tax depreciation and amortisation (EBITDA) of its healthcare business.
The healthcare business makes medical packaging and drug delivery devices such as bronchial inhalers and injection syringes.
Rexam said in June last year that it would sell the unit, following a decision to focus on its core beverage can business.
The deal is expected to close around the middle of the year. Rexam was advised by Barclays.
The company said it was in discussions regarding the sale of its remaining healthcare unit – closures & containers – and would provide an update later on.
Shares in Rexam were trading up 1.4 percent at 500 pence at 0835 GMT on the London Stock Exchange on Monday.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.