UK based packaging maker RPC Group has agreed to acquire packaging firm British Polythene Industries (BPI) in a deal worth about £261m ($379m).
Under the terms of the deal, each shareholder of BPI will receive 470 pence in cash and 0.60141 of a new RPC share for each BPI share held.
The deal is a part of RPC Group's effort to strengthen its operations in the European polythene films market.
RPC CEO Pim Vervaat said: "With today's announcement, RPC is taking another important step in delivering its Vision 2020 strategy.
"BPI has a strong product portfolio with attractive market positions in its core markets in Europe."
RPC expects the acquisition to further expand its range of polymer conversion technologies and improve cost synergy potential while enhancing the overall polymer buying capability.
BPI chairman Cameron McLatchie said: "The last five years have seen consistent improvements in BPI's performance and prospects, but not all of this progress has been reflected in the price or rating of BPI's shares.
"RPC has recognized the value inherent in our business and prospects by making an offer at an attractive premium to the share price.
"Shareholders will benefit from enhanced liquidity for their investment, and employees will have access to the opportunities available in a larger group."
BPI produces about 275,000t of polythene films annually for a wide range of markets, including agriculture and horticulture, industrial and consumer products, food and related packaging and recycled products.
The firm is also engaged in recycling waste polythene film in Europe.
Subject to regulatory clearance from the European Commission among others, the deal is planned to be completed by mid-August.
