RPC Group PLC Acquisition of Nordfolien GmBH (4781H)
March 13 2018 - 2:00AM
UK Regulatory
TIDMRPC
RNS Number : 4781H
RPC Group PLC
13 March 2018
13 March 2018
RPC Group Plc
Acquisition of Nordfolien GmBH
RPC Group Plc ("RPC" or "Group"), a leading international
plastic products design and engineering company, today announces
the acquisition of Nordfolien GmBH ("Nordfolien") for a
consideration of EUR75 million. Nordfolien is a leading player in
the design and manufacture of higher added value polythene films
for both industrial and consumer packaging markets. Nordfolien has
two well-invested sites in Germany and Poland, including in-house
recycling capabilities, and has developed, patented and
commercialised a number of innovative, market leading products. The
Nordfolien management team will continue to operate the business
from its current locations.
After the successful acquisition and transformation of bpi
group, which is now generating a return on capital employed (ROCE)
in excess of 15%, the acquisition of Nordfolien represents an
important next step in growing the Group's flexibles platform. The
acquisition will augment bpi's market positions in Europe, as well
as providing access to higher growth geographies including Eastern
Europe. Nordfolien will contribute to the Group's future growth
while affording the opportunity to realise an attractive level of
cost synergies, primarily from procurement and best practice
exchange. Exceptional costs associated with realising these
synergies are anticipated to be not material, and Nordfolien also
has capacity that can be utilised by bpi for further growth without
incurring additional capital expenditure. The deal is expected to
be earnings enhancing in the first full year of ownership with an
attractive ROCE level (well ahead of the Group's weighted average
cost of capital) upon realisation of cost and revenue synergies.
All RPC's strict acquisition criteria are expected to be met.
The consideration of EUR75 million is being funded from RPC's
existing debt facilities and represents a pre-synergy EBITDA
multiple of circa 7x (based on unaudited accounts to December
2017). Nordfolien is expected to report revenue of EUR130 million
for the same period. The acquisition will not impact the share
buyback programme, of up to GBP100m, currently being executed.
Completion of the acquisition is subject to clearance from the
Polish and German competition authorities, and is expected in the
first half of the financial year ending March 2019.
Commenting on the acquisition, Pim Vervaat, RPC's Chief
Executive, said:
"I am delighted to welcome Nordfolien to the RPC Group. The
acquisition will significantly enhance our growth platform in
flexibles whilst adding further innovation capability in an
attractive market segment. Participation in the ongoing
consolidation of the European plastic packaging industry remains a
core part of RPC's strategy, and through our focus on innovation,
sustainability and operating in attractive end markets, we remain
confident in continuing to grow organically through the cycle ahead
of GDP."
For further information:
+44 (0)1933 +44 (0)20
RPC Group Plc 410064 FTI Consulting 3727 1340
Pim Vervaat, Chief Executive Richard Mountain
Simon Kesterton, Group Finance Nick Hasell
Director
Clare Banham, Investor Relations
Director
About RPC Group:
RPC is a leading plastic products design and engineering company
for packaging and selected non-packaging markets, with over 32
innovation centres and 194 operations in 34 countries, and employs
c.25,000 people. The Group develops and manufactures a diverse
range of products for a wide variety of customers, including many
household names, and enjoys strong market positions in many of the
end-markets it serves and the geographical areas in which it
operates. It uses a wide range of polymer conversion technologies
in both rigid and flexible plastics manufacture, and is now one of
the largest plastic converters in Europe, combining the development
of innovative packaging and technical solutions for its customers
with good levels of service and support.
For further information please visit: www.rpc-group.com
Follow us on Twitter: @rpc_group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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