Outbidding of Apollo's offer for RPC / Plastic packaging giant worth USD 13 bn could be created
Info: An Apollo spokesperson has told Plasteurope.com that another offer will not be made by the investment company.
14.03.2019 14:48:22
Packaging group Berry Global (Evansville, Indiana / USA; www.berryglobal.com) has agreed on a deal to take over RPC (Rushden / UK; www.rpc-group.com). Just over a month ago, the US company announced it was considering a possible cash offer for its UK competitor (see Plasteurope.com of 04.02.2019). The transaction purchase price is USD 6.5 bn (approximately EUR 5.8 bn) – with an equity of USD 4.4 bn, including transaction expenses of USD 300m and assumed average net debt of USD 1.8 bn as of February 2019.

The combined plastic packaging company is expected to have annual sales of around USD 13 bn and adjusted EBITDA of USD 2.4 bn, with 293 facilities and approximately 48,000 employees across the globe. Around 55% of net sales are expected from North America and 36% from the EMEAI region, with around a one-third share each from the end markets of food and beverages, health and hygiene as well as engineered and nonwoven speciality materials.

Berry's rival in bidding for RPC has been investment firm Apollo Global Management (New York, New York / USA; www.agm.com). On 8 March 2019, Berry announced a recommended superior offer to acquire all of the share capital of the RPC group for GBP 7.93 per share in cash – higher than Apollo's offer of GBP 7.82 per share. RPC's board of directors has unanimously recommended Berry's offer, with the proposed transaction expected to close in Q3 2019.

The RPC takeover would be an addition to the ongoing consolidation of plastic packaging companies – see Plasteurope.com of 03.10.2018. With the buy, Berry intends to create a global plastic and recycled packaging giant. RPC has 153 manufacturing sites, where it employs injection moulding, blown film extrusion, blow moulding, thermoforming and rotational moulding technologies to produce rigid and flexible packaging. The UK packaging group has a commercial presence in 33 countries as well as around 25,000 employees. For the 12-month period up to 30 September 2018, RPC recorded net sales of USD 4.8 bn and adjusted EBITDA of USD 768m.

In the 12-month period ended December 2018, Berry Global had sales of USD 8.1 bn and adjusted EBITDA of USD 1.4 bn. Its consumer packaging segment generated sales up 30% at USD 2.5 bn.
12.03.2019 Plasteurope.com [241994-1]
Published on 12.03.2019
RPC: Verpackungskonzern Berry überbietet ApolloGerman version of this article...

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