RPC to acquire ESE and Astrapak packaging firms


UK packaging giant RPC Group is to acquire ESE World B.V. from Stirling Square Capital Partners for a consideration of EUR262.5 million subject to customary adjustments.

ESE is Europe's largest "pure play" temporary waste storage solutions provider with well-known regional and pan-European brands. The company services a broad customer base ranging from local municipalities to private waste service providers. ESE's manufacturing footprint comprises one facility in Germany and one in France, in addition ESE has one R&D centre in Germany. Overall the Company employs approximately 600 full time employees. For the year ending 31 December 2016, the company is expecting to achieve revenues in excess of EUR200 million whilst consuming circa 45 kt of polymers. Björn Hedenström, Chief Executive Officer of ESE, will continue to lead the business which will be an independent business unit within the RPC Promens division going forward.

According to RPC, the proposed acquisition of ESE represents a strategic opportunity to enter into a high added value polymer consuming segment in a stable and growing European market, with good management and well-established market positions supported by industry recognised branded products.

It is expected to complete in the first quarter of 2017.

Meanwhile, RPC will also acquire South African firm Astrapak Limited for £79 million on a cash-free, debt-free basis, equivalent to an enterprise value to underlying EBITDA FY16A multiple of approximately 6.3 times.

Listed on the Johannesburg Stock Exchange, Astrapak is a manufacturer of rigid plastic packaging products and components with a broad product offering across injection moulding, blow moulding and thermoforming technology platforms. The company serves industrial and consumer markets, supplying customers in Africa. Astrapak's manufacturing footprint comprises nine facilities in South Africa, employing approximately 1,100 people. For the year ended 28 February 2016, the Company achieved revenues of £81 million. Robin Moore, Chief Executive Officer of Astrapak, will continue to lead the Astrapak business as a stand-alone sub-division within RPC Superfos.

RPC will fund the consideration through its existing debt facilities.

Both the proposed acquisitions are said to represent “an excellent fit” with RPC's Vision 2020 objective to increase its manufacturing footprint within and outside Europe.


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