LONDON (Alliance News) - Berry Global Group Inc said Tuesday it has entered an agreement with a pension plan trustee in connection with its acquisition of fellow plastic packaging firm RPC Group PLC.
The non-binding memorandum of understanding is with the trustee of the M&H staff pension plan, and is in addition to its memorandum of understanding with the trustees of the RPC Containers Ltd pension scheme.
The M&H plan trustee has confirmed that the acquisition will not harm the covenant supporting the plan or be "materially detrimental" to the benefits received from it.
The M&H plan trustee, therefore, does not intend to call forward the valuation of the M&H plan, which is due at the end of September, or seek any change to the contributions payable to the plan. The existing security arrangements will also remain in place.
Berry Global is currently engaged in "constructive discussions with the trustees of the British Polythene pension scheme".
RPC has agreed a 793 pence per share acquisition by US-based Berry Global that would value the FTSE 250 company around GBP3.34 billion.
RPC previously agreed an offer with Apollo Management IX LP for 782p per share for a value of GBP3.32 billion but jettisoned this in favour of the Berry Global bid.
Shares in RPC were down 0.1% at 788.80p in London on Tuesday.