Rexam, a leading consumer packaging company, has reached an agreement with Belgian brewing giant Interbrew to acquire German glass container manufacturer Nienburger Glas.
Rexam has made a £68 million (€107.5m) bid, including net borrowings, for the German company and will assume £8 million of pension - but the acquisition was supported by a supply agreement with Interbrew.
Commenting on the announcement, Rolf Börjesson, Rexam's chiefexecutive, said: "We have consistently stated that the German glassindustry needs consolidating and that Rexam could take theopportunity to play a role as a consolidator.
The integration of ourglass operations with Nienburger's will create cost saving synergiesand also reinforce our long term relationship with Interbrew, one ofour principal beverage customers."
The company added that the acquisition will exceed Rexam's cost of capital within the first fullyear of ownership and will provide some £3 million of synergiesin the following two years. The transaction is subject to regulatory approval by relevantcompetition authorities.
Nienburger Glas hasfour sites across Germany and employs 1,270 people.