Packaging firm in dramatic U-turn to seal £3.34bn sale
Northants packaging firm RPC looks set to be sold for £3.34bn to Berry Group.
The move comes just weeks after RPC said it was set to accept an offer from New York head-quartered Apollo Global Management, a private equity firm.
However, an improved offer from Berry has now been accepted by the RPC board.
In a statement, RPC said: ” The boards of directors of Berry Global International Holdings Limited (Berry Bidco) and RPC Group Plc (RPC) are pleased to announce that they have reached agreement on the terms of a recommended superior cash offer, to be made by Berry Bidco, pursuant to which Berry Bidco will acquire the entire issued and to be issued ordinary share capital of RPC.”
RPC also announced that it has withdrawn its recommendation of the Apollo offer, adding thay it “proposes to adjourn the RPC shareholder meetings convened for 20 March 2019 to consider the Apollo offer”.
Jamie Pike, chairman of RPC, said: “The Board of RPC is pleased to recommend Berry’s cash offer for the Group which is at an 11p per share premium to the Apollo proposal and provides shareholders with significant value in cash for their shares. The combination of RPC and Berry would create a leading global plastics products design and engineering company and represents a strong strategic fit. Both companies are highly complementary in terms of product portfolio, customer base, polymer conversion technologies and geographic footprint.”
Tom Salmon, chief executive and chairman of Berry, said: “We are extremely excited to welcome the deep and experienced RPC team, along with their differentiated global platform, to the Berry organization. This transformational combination will create a strong global leader in plastic packaging and recycled solutions that enhances our organic and inorganic growth opportunities moving forward. We believe this transaction enhances the long-term outlook for our business and provides a unique value creation opportunity for our shareholders. We plan to leverage our combined know-how in material science, product development and manufacturing technologies across resin-based applications to integrate quickly and build a best-in-class organization for all stakeholders.”
