RPC makes €386m offer to buy Promens as a ‘natural fit’

08-Jan-2015 - Last updated on 08-Jan-2015 at 12:23 GMT

Packaging supplier the RPC Group, is looking to strengthen its European market position with the proposed acquisition of Promens Group for a consideration of €386 million on a cash-free, debt-free basis, subject to customary adjustments.

Framtakssjodur Islands slhf. (FSÍ) and Eignarhaldsfélag Landsbankans ehf. (Landsbankinn), the current Promens owners received an irrevocable binding offer from the UK-based company to acquire the entire issued share capital of Promens and its subsidiaries, excluding its Medical Packaging business at present.

“The combination of RPC and Promens provides a unique opportunity to create an enhanced platform of scale across our core European end markets,” said Pim Vervaat, Chief Executive of RPC.

“The enlarged group will benefit from opportunities to extend its product and technology offering across the full breadth of its combined operations as well as to achieve cost efficiencies.”

‘Natural fit’

Vervaat claims the two companies are a ‘natural fit’ and this is echoed by Jakob Sigurdsson, CEO of Promens, who said the combination would be a “very powerful one which would undoubtedly deliver tremendous value for our customers through the enlarged Group’s enhanced product, technology and geographic reach.”

RPC believes that the acquisition would strengthen its market position in and outside of Europe, extending its reach in a number of markets.

In Personal Care, Promens has a diverse customer base including global consumer companies and local Western and Eastern European brands as well as benefitting from being located in close proximity to customers’ centres of excellence and filling locations in France.

The acquisition would extend RPC’s reach in this market through new products and customers as well as extending partnerships with existing customers.

Proposed

A combined RPC-Promens could have annualised revenues approaching £1.6 billion across 95 plants and 11,200 employees.

The offer is still awaiting the approval of shareholders and required approvals from the relevant governmental and competition authorities in certain jurisdictions in order to go ahead.

The companies say they will operate their businesses as normal meaning there will be no disruption of supplies or project handling for any customer as a result of the proposed transaction.