Apollo seals $4 billion deal for ketchup-to-lotions packager RPC

Rubbish Litters UK Beaches

Rubbish Litters UK Beaches

Plastic packaging supplier RPC Group said it had accepted a £3.32bn takeover bid from private equity firm Apollo Management.

RPC, Europe's biggest plastic packaging maker, makes a range of products including packaging for beverages, coffee capsules and healthcare products.

That's 16% higher than its closing price on September 7, the day prior to the offer period.

Following the buyout offer, Pike said the agreement with New York-based Apollo was the culmination of the board's efforts to resolve differing investor views.

City A.M. understands RPC is unaware of any other shareholders who have been irked by the deal, but Nicholas Hyett, analyst at Hargreaves Lansdown, said it was "potentially disappointing for investors".

Under the terms of the agreed deal, each RPC shareholder will be entitled to receive 782p per share, as well as a previously declared dividend of 8.1p per share to be paid on 25 January.

Canadian PM Justin Trudeau sacks ambassador to China after Huawei remarks
China detained two Canadians shortly after Meng's arrest in an apparent attempt to pressure Canada to release her. And three, there's the issue of Iran sanctions in her case and Canada does not sign on to these.

He also said that with board backing and minimal regulatory concerns, he expected the deal to go through.

The private equity firm has broad experience in the plastics industry, with at least one notable success.

The deal is the largest in the packaging sector since Amcor agreed to acquire Bemis a year ago. The UK-headquartered converter started talks with Apollo and rival equity firm Bain Capital in September 2018, with Bain dropping out in December. RPC had also engaged in talks with Bain Capital for a while, only to see the firm walk away past year.

RPC had said last July that shareholder pressure was preventing it from pursuing some growth opportunities.

Following the unveiling of the deal, RPC shares rose as much as 5.5%, the most in four months, to reach 774 pence.

The RPC directors were advised by Rothschild & Co, Credit Suisse and Evercore.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.