Rome UK Bidco, a company formed on behalf of funds managed by Apollo Management IX, has agreed to acquire plastic packaging firm RPC Group, in a deal valued at around £3.3bn.
As per terms of the deal, RPC shareholders will receive 782p in cash per each share, as well as previously declared interim dividend of 8.1p per share.
The deal represents a premium of 15.6% to the closing price of 683.6p per RPC share on 7 September 2018.
In September 2018, RPC announced that it started discussions with Apollo for the acquisition of the firm.
RPC chairman Jamie Pike said: “The Board believes that the offer recognises the quality of RPC’s businesses and the strength of their future prospects. In July I stated that differing investor views on the appropriate level of gearing was constraining the group’s ability to pursue opportunities for growth and, as such, putting pressure on RPC’s valuation.
“I also said that the Board was working to resolve this situation. Today’s announcement is the culmination of that process. The Board believes that the offer of £7.82 per share is a good outcome for shareholders and intends to recommend unanimously that they accept this offer.”
Established in 1991, RPC is a global design and engineering company in plastic products in packaging and non-packaging markets.
With more than 31 design and engineering centers, the company has turnover of around £3.7bn.
RPC Group manages seven divisions, including RPC Ace, RPC Bebo, RPC bpi group, RPC Bramlage, RPC M&H, RPC Promens and RPC Superfos.
RPC Ace is specialized in providing products and services for five major markets such as packaging, lifestyle, medical, power and automotive, while RPC Bebo produces thermoformed packaging solutions for different markets such as spreads, fresh, frozen and ambient shelf stable food, coffee capsules, vending cups and dairy products.
RPC Bebo produces thermoformed packaging solutions for different markets, while RPC bpi group supplies polythene films to the customers in various sectors.
RPC Superfos offers packaging solutions for a range of food and non-food applications, while RPC Bramlage and RPC M&H supplies plastic packaging solutions for customers in different sectors.