I love it when boring businesses get just a little bit more interesting. It's hard to get more boring than packaging, which is the business of Britain's Rexam
Rexam already has a pretty good business as the largest producer of beverage cans in the world, and now the company is expanding its plastics operations by acquiring the plastics business of Owens-Illinois
The immediate reaction to the sale has been negative for Rexam. I'm guessing that's largely because the company plans to issue equity as part of funding the purchase. I'm a bit more curious about the deal, because if Rexam can combine the acquisition with its other plastics packaging business and share technology and products, it could help it establish a strong position outside of its aluminum can business. Rexam has done a good job with acquisitions and has reliably generated cash flow over the past few years, which makes this acquisition and its potential all the more interesting.
Motley Fool Global Gains lead analyst Bill Mann is traveling in China, India, and Taiwan in search of new opportunities in some of the world's fastest-growing economies. To find out what international stocks Bill is recommending right now, check out a 30-day free trial to Global Gains today.