Rpc Group Share News (RPC)

(ShareCast News) - Plastics engineering firm RPC Group is to buy European plastics manufacturer ESE World from Stirling Square Capital Partners for €262.5m in a bid to expand on the continent.The acquisition, which is subject to regulatory competition approval, provides a way for RPC to enter the waste storage solutions and polymer market in Europe.ESE is expected to be earnings accretive from the first year with return on capital employed in excess of the weighted average cost of capital, while the return on net operating assets and return of sales levels are expected to be ahead of the minimum levels of 20% and 8% respectively.Chief executive Pim Vervaat said: "The acquisition of ESE provides yet another good opportunity for RPC to expand its product offering with a quality growth platform in Europe. The combination will further enhance the group's overall scale creating good opportunities for procurement and efficiency synergies."ESE, Europe's largest 'pure play' temporary waste storage solutions provider, has manufacturing facilities in Germany and France, and a research and development centre in Germany.For the year ending 31 December 2016, ESE is expected to have revenue in excess of €200m while consuming about 45 kilotonnes of polymers.Björn Hedenström, ESE's chief executive, will continue to lead the business as an independent unit within the RPC Promens division.