Berry Global to acquire RPC for US$4 bn, ups offer made by Apollo

UK’s packaging giant RPC Group has agreed to a higher takeover bid from US-based packaging firm Berry Global Group, to the tune of US$4.37 billion. After private equity firm Apollo agreed to acquire RPC Group, Berry Global upped the offer to outbid the US$4.3 billion bid from Apollo. plasticsandrubberasia.com/feb2019/company/rpc-group-in-takeover-bid-by-berry-apollo.html

RPC, Europe’s largest packaging group, has confirmed Berry Global’s higher offer and said its directors would recommend shareholders to vote in favour of the new offer.

Berry’s offer for each RPC share is 1.4% higher than Apollo’s offer, and represents a premium of 3.5% to RPC’s closing price on Jan. 30, the last day before Berry said it was considering a bid for RPC.

Apollo had offered to pay RPC shareholders, a premium of 25% from RPC’s closing price on 22 January, RPC said in a regulatory announcement.

Indiana-based Berry Global, which plans to fund the purchase through debt, began showing interest in RPC after Apollo had sealed the deal. Apollo did not sweeten its offer even though some analysts noted that it could have been higher.

Last year, RPC Chairman Jamie Pike had said that the company was pressured by investors to sell, adding that this was “constraining the group’s ability to pursue some attractive opportunities for growth”. Following Apollo’s offer, Pike said the agreement was a culmination of the board’s efforts to resolve differing investor views.

RPC was founded in 1999 and produces a range of products from coffee capsules to healthcare products in 34 countries.

Berry Global makes plastic containers, prescription vials and adhesives. Apollo and Graham Partners bought it in 2006 and it was listed in 2012.

RPC’s products are highly complementary to Berry’s existing businesses and will allow the combined company to be a bigger player in the highly fragmented global market for plastic packaging, Berry said.

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