UK’s RPC Group, one of the world's biggest rigid packaging makers, will buy Hong Kong-based ACE Corporation Holdings Ltd for US$430 million to meet growing demand from customers in Asia.

ACE, established over 25 years ago, is one of the Far East’s industry leaders in the manufacture of injection moulded components and injection moulding tools for niche segments within the packaging, lifestyle, medical, power and automotive end markets. Headquartered in Hong Kong, ACE operates five production plants in mainland China with approximately 3,300 employees. For the year ended 31 December 2013, ACE achieved revenues of HK$1,355 million and EBITDA of HK$314 million, these results representing growth of 25% and 38% respectively from the year ended 31 December 2012.

RPC said it would pay an initial sum of US$301 million for ACE. It will pay up to an additional US$129 million should ACE record a compound annual growth rate of at least 15.6% in its earnings before interest, taxation, depreciation and amortization (EBITDA) over the four years ending Dec. 31, 2017.

RPC's first foray into Asia will give the company access to five manufacturing plants in China, including a site in the city of Hefei adjacent to Unilever’s biggest Chinese plant. According to RPC, Asia accounts for about 27% of the global rigid plastics packaging market, which was worth about US$135 billion in 2013.

RPC has been on a buying spree and bought rigid plastic packaging supplier Maynard & Harris Group as well as Helioplast this year. (http://www.plasticsandrubberasia.com/jan2014/company7.html) (http://www.injectionmouldingasia.com/jan2014/news3.html)