RPC Group, an international rigid plastic packaging supplier, is set to acquire ACE for an initial consideration of around $301m (£178m) and a total consideration of up to $430m (£255m).
RPC proposes to fund the initial $301m consideration by issuing about 8.5 million new ordinary shares to the shareholders of ACE, which produces plastic injection molded components and injection molding tools.
The remaining amount will be funded by RPC through a new revolving credit facility arranged alongside the acquisition and existing cash reserves.
RPC Group chairman Jamie Pike said the acquisition is a strategic move for the company, which is expected to enhance manufacturing footprint in the Far East.
"We look forward to welcoming ACE into the Group and to generating further value to Shareholders as we grow our manufacturing and sales base in the Far East," Pike added.
ACE, which is headquartered in Hong Kong, manufactures products for niche segments within the packaging, lifestyle, medical, power and automotive end markets.
