RPC to buy Promens; its fourth buy in two years

In line with its Vision 2020 focused growth strategy announced in 2013, UK-based rigid plastic packaging manufacturer RPC Group is set to buy Icelandic rival Promens Group for EUR386 million, its fourth acquisition over a period of less than two years.

RPC, which makes packaging for brands such as Heinz and Lurpak, expects the integration of the privately owned Promens to cost EUR35 million. Promens employs approximately 3,800 people at its 40 facilities, five of which are based outside of Europe. For the year ended 31 December 2013, the company recorded revenues of EUR582 million.

RPC chief executive Pim Vervaat commented: "Today's announcement marks a key strategic milestone for RPC in line with our Vision 2020. The combination of RPC and Promens provides a unique opportunity to create an enhanced platform of scale across our core European end markets. The enlarged group will benefit from opportunities to extend its product and technology offering across the full breadth of its combined operations as well as to achieve cost efficiencies.”

In June 2014, RPC completed the acquisition of Ace Corporation Holdings, a China-based and Hong Kong-headquartered manufacturer of injection moulded components and injection moulding tools for the packaging, lifestyle, medical, power and automotive end markets. Operating from five factories in China, it has an annual turnover of circa £104 million.

In 2013/14 RPC also made two acquisitions in Europe. The Maynard & Harris (M&H Plastics) business, whose principal manufacturing site is based in Beccles, UK, and Helioplast, based in Bosnia-Herzegovina. Both have been successfully integrated within the group and both have made a good contribution to the half year results. M&H Plastics, with an annual turnover of around £80 million and whose acquisition has consolidated the group’s leading personal care offering in the UK, fully realised its anticipated purchasing and working capital synergies during the period. Helioplast, albeit a smaller business, increased its sales by 41% over the same (pre-acquisition) period.

RPC, which was established in 1991 following the management buyout of the plastic operations of Reedpack from SCA, saw a 12% increase in revenue reflecting contribution from its recent acquisitions and an increase in like-for-like sales of 4%, for its half year results ended 30 September 2014.

RPC has operations in 19 countries, comprising 50 manufacturing sites and seven sales centres.


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