LONDON (Alliance News) - FTSE 250-listed plastic products firm RPC Group PLC on Thursday said it has agreed a deal to acquire fellow UK-listed firm British Polythene Industries and will launch a share placing to part-fund the deal.
RPC will pay 470.00 pence per share in cash and 0.60141 of new RPC shares for British Polythene, valuing the group at a total of GBP261.0 million.
The total per share value of the deal will be around 940.00p per British Polythene share, a 30% premium to the stock's closing price of 725.00p per share on Wednesday, which had given the company a market capitalisation of GBP198.9 million.
To part-fund the deal, RPC will place shares through an accelerated bookbuild, run by Deutsche Bank AG and Panmure Gordon (UK) Ltd, to raise around GBP90.0 million.
RPC said the deal will provide it with exposure to an adjacent polymer market and increase the range of polymer conversion technologies in its portfolio and is in line with its Vision 2020 strategic plan, which includes a push to drive strategic consolidation in RPC's European markets.
"The proposed offer for BPI represents a compelling strategic opportunity for RPC to enter the European polythene films market through an established platform. BPI has a strong product portfolio with attractive market positions in its core markets in Europe," said Pim Vervaat, RPC's chief executive.
"The combination will further broaden RPC's range of polymer conversion technologies in line with global peers, establish a new growth platform with a strong cost synergy potential whilst enhancing the group's overall polymer buying capability," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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