RPC Group plans acquisition of Global Closure Systems

Plastic products design and engineering company RPC Group is planning to acquire Global Closure Systems Group (GCS Group) in a deal valued at €650m (£470m).

The FTSE 250 company announced the proposed deal on Monday, and plans to fund it through a fully underwritten one for five rights issue and debt, with cash consideration on completion of €186m.

The company said GCS Group is a leading global manufacturer and provider of closures and dispensing systems for consumer products in more than 100 countries worldwide, with revenues of €590.5m for the year to 31 December 2014.

RPC Group said the acquisition will help the company broaden its product capabilities in European rigid plastic packaging by allowing it to offer closure solutions alongside its existing packaging product offering.

It also believes it will extend its reach in several niche end-markets, creating significant opportunities for enhanced combined growth and scale.

To fund it, the company proposes to raise approximately £232.6m through its one for five rights issue, which will be offered to shareholders on the register on 29 December.

The deal is conditional on shareholder approval at RPC Group’s general meeting on 4 January 2016 among other conditions, and is expected to be completed by March 2016.

RPC Group chief executive Pim Vervaat said it’s another key milestone in its Vision 2020 strategy.

“The proposed acquisition of GCS Group provides a compelling opportunity for RPC to expand its product offering with an extensive range of highly complementary closure and dispensing solutions and technologies,” he said

“We believe RPC and GCS Group are an excellent fit and we look forward to developing our enlarged platform to generate further value for our customers and shareholders."