British rigid plastic packaging supplier RPC Group will be acquiring Iceland-based plastic products maker Promens Group for €386m (£306.73m).
Promens specialises in manufacturing rigid plastic packaging products and rigid plastic components. It uses a range of moulding technologies in its production processes, including several niche technologies.
The company comprises 40 facilities, of which 35 are located in Europe and employs around 3,800 people.
It is also eyeing acquisitions to strengthen its position in Europe and to meet the growing demand for polymer.
RPC which manufactures packaging for Nivea creams and Nescafe coffee capsules will be funding the balance by increasing its revolving credit facility to £490m from £350m. RPC generated revenues of around €582m (£462m) in 2013.
The acquisition of Promens is RPC's fourth significant deal in two years, including the one in which it acqured five plants in China, reported Reuters.
RPC CEO Pim Vervaat said: "The combination of RPC and Promens provides a unique opportunity to create an enhanced platform of scale across our core European end markets. 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.
RPC and Promens are a natural fit and we look forward to developing our enlarged platform to deliver superior value for our customers and shareholders in the future."
The deal is subject to approval from the shareholders of RPC who will hold a meeting on 17 December, 2014 and is expected to be completed by March 2015.
Image: RPC specializes in producing rigid packaging solutions. Photo: courtesy of RPC Group.
