RPC Buys German Packaging Firm Nordfolien For EUR75.0 Million

LONDON (Alliance News) - RPC Group PLC said Tuesday it acquired German packaging peer ...

Alliance News 13 March, 2018 | 8:29AM
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LONDON (Alliance News) - RPC Group PLC said Tuesday it acquired German packaging peer Nordfolien GmBH for EUR75.0 million.

RPC - a FTSE 250-listed plastic products maker - said Nordfolien was a "leading" polythene film manufacturer for the industrial and consumer packaging markets.

Nordfolien operates from two "well-invested" sites in Germany and Poland which also included in-house recycling capabilities. The company management will remain at the firm after the acquisition.

RPC will fund the EUR75.0 million consideration through existing debt facilities. The company emphasised the deal will not affect its GBP100 million share buyback programme.

Nordfolien is expected to report revenue of EUR130.0 million in 2017. The deal will represent a seven times earnings before interest, tax, depreciation and amortisation multiple for 2017.

RPC expects the deal to close in the first half of its financial year ending March 2019, and is expected to be earnings enhancing in the first year of full ownership.

"I am delighted to welcome Nordfolien to the RPC Group," RPC Chief Executive Officer Pim Vervaat said. "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."

Shares in RPC were 0.1% higher at 836.00 pence on Tuesday.

By Ahren Lester; ahrenlester@alliancenews.com.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
RPC Group PLC 764.40 GBX 1.46 -
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