RPC GROUP
Acquisition: Plastics packgaging activities of Schmalbach-Lubeca / Leading position in European rigid packaging market
Following fast on the heels of its announcement to expand its PET operations (see Plasteurope.com No. 23, 1996), comes the news from Schmalbach-Lubeca AG (D-40880 Ratingen) that it is selling off the rest of its plastics packaging activities to the British company RPC Group PLC (Grove Street, Raunds, GB-NN9 6ED). The deal will catapult RPC into the leading ranks of rigid plastics packaging manufacturers in Europe more than doubling its business. To date RPC has been one of the largest and fastest growing plastics packaging companies in the UK. With this acquisition it will gain 12 factories involved in thermoforming, injection moulding and blow moulding located in Germany, Belgium, Netherlands, UK, Spain, Poland and Hungary.
The deal completes a period of strategic reorganisation for Schmalbach-Lubeca, to focus on the core areas of PET packaging, beverage cans and White Cap closures. Its plastics packaging operations have been underperforming partly because of the rapid rise in polymer prices during 1994-95 and partly because of weak demand in its principle markets. For 1995 these companies recorded a loss of DEM 3m on turnover of DEM 389m. Prior to the sale the group had been refocusing activity to concentrate on higher added value sectors and improve production efficiencies. The challenge for RPC will be to realise the expected benefits from this reorganisation now that polymer prices have declined. Obviously the group would also hope that the acquisition will help to improve the competitive position of these companies as it will give increased polymer purchasing power, as well as generate cost savings and synergies.
RPC Group was established in 1991 as the result of a management buyout from Svenska Cellulosa Aktiebolaget. The group had a turnover of GBP 95.6m with profits of GBP 9.6m for the year ended 31.03.96 (see Plasteurope.com No. 17, 1996). Operating 7 plants its present product range includes paint cans, retail bottles and catering jars for sauces, lubricating oil containers, spouted closures and multilayer thermoformed pots.
The total deal is worth DEM 160m in cash which will be partly financed by a new rights issue. The Plastic Packaging Division to be sold by Schmalbach-Lubeca includes the thermoforming companies bebo-Plastik GmbH (D-27432 Bremervörde), Cobelplast N.V. (B-9160 Lokeren) and Tedeco BV (HQ: PO Box 215, NL-7400 AE Deventer) – with plants in Netherlands, the UK and Hungary) –, injection moulder Bramlage GmbH (D-49393 Lohne) and the blow moulding businesses of Sobemi NV (B-2260 Oevel) and Verpackungs-Industrie Kutenholz GmbH (D-27449 Kutenholz).
The deal completes a period of strategic reorganisation for Schmalbach-Lubeca, to focus on the core areas of PET packaging, beverage cans and White Cap closures. Its plastics packaging operations have been underperforming partly because of the rapid rise in polymer prices during 1994-95 and partly because of weak demand in its principle markets. For 1995 these companies recorded a loss of DEM 3m on turnover of DEM 389m. Prior to the sale the group had been refocusing activity to concentrate on higher added value sectors and improve production efficiencies. The challenge for RPC will be to realise the expected benefits from this reorganisation now that polymer prices have declined. Obviously the group would also hope that the acquisition will help to improve the competitive position of these companies as it will give increased polymer purchasing power, as well as generate cost savings and synergies.
RPC Group was established in 1991 as the result of a management buyout from Svenska Cellulosa Aktiebolaget. The group had a turnover of GBP 95.6m with profits of GBP 9.6m for the year ended 31.03.96 (see Plasteurope.com No. 17, 1996). Operating 7 plants its present product range includes paint cans, retail bottles and catering jars for sauces, lubricating oil containers, spouted closures and multilayer thermoformed pots.
The total deal is worth DEM 160m in cash which will be partly financed by a new rights issue. The Plastic Packaging Division to be sold by Schmalbach-Lubeca includes the thermoforming companies bebo-Plastik GmbH (D-27432 Bremervörde), Cobelplast N.V. (B-9160 Lokeren) and Tedeco BV (HQ: PO Box 215, NL-7400 AE Deventer) – with plants in Netherlands, the UK and Hungary) –, injection moulder Bramlage GmbH (D-49393 Lohne) and the blow moulding businesses of Sobemi NV (B-2260 Oevel) and Verpackungs-Industrie Kutenholz GmbH (D-27449 Kutenholz).
31.12.1996 Plasteurope.com [19655]
Published on 31.12.1996