Rigid plastic packaging manufacturer will be acquiring the APPE Packaging Division of La Seda de Barcelona Group for €360m.
The amount includes a gross up of €65m of accounts payable that will be discounted from the bid which would result in the actual investment being €295m.
Plastipak, a fully-owned subsidiary of Plastipak Holdings, manufactures rigid plastic containers for the food, beverage and consumer products industries. It had won the bid in an insolvency auction process in November 2014.
The packaging company, along with the negotiations, has been carrying out due diligence of APPE and said it was satisfied with APPEs capability of being successful even under challenging conditions.
APPE specialises in manufacturing single-stage and two-stage PET preforms, bottles and containers for industries like food, beverages, home and personal care.
Plastipak Chief Commercial Officer Frank Pollock said: "We remain confident that this transaction will enable us to better serve our existing and future customers and ultimately to benefit consumers."
Pollock further added that the company aims to use the combined talent, technology, and manufacturing footprint of Plastipak and APPE to create additional and more complete packaging solutions.
Plastipak President and CEO William Young said: "We look forward to welcoming the APPE workforce to our organization, and to adding their talent and capabilities to our own in the marketplace.
"We are also eager to begin investing in the combined operations to continue to develop and offer innovative packaging solutions that address changing consumer demands and lifestyles."
The deal is subject to a number of approvals, following which it is expected to be closed by June or July this year.
