Allen & Overy has advised Rexam, leading global beverage can maker, on the sale of the bulk of its healthcare business to Montagu Private Equity.

Rexam produces cans for large corporations such as PepsiCo, AB InBev and Carlsberg and the sale of this healthcare division will allow the company to place increasing focus on can making.

Rexam’s healthcare business has three divisions: Pharmaceutical Devices, Prescription Retail Packaging and Closures & Containers.

In this transaction, Rexam is selling its Pharmaceutical Devices and Prescription Retail Packaging divisions, returning GBP450 million in cash to shareholders.

The transaction is subject to consultation with various European works councils, is conditional on the necessary regulatory approvals and subject to certain adjustments at completion. The transaction is expected to complete around the middle of this year.

Partner Alun Eynon-Evans led on the deal, assisted by senior associate Tara Rajah and associates Alex Tilley, Hugh Robinson and Karishma Naravane. Partner Lydia Challen provided tax advice, with the assistance of senior associate Tim Harrop. Partner Antonio Bavasso provided competition advice, together with senior associate Thomas Masterman. Partner Frederic Moreau and associate Sandra Clapaud provided French law advice.