Rigid plastic packaging supplier RPC Group (Higham Ferrers, Rushden / UK; www.rpc-group.com) has announced plans to acquire Danish packaging rival Superfos Industries (Taastrup; www.superfos.com) for EUR 240m. RPC said the transaction will strengthen its capabilities in the open top filled injection moulded plastic packaging market, and bring innovative products such as thin-walled injection moulded packaging and oxygen barrier products.

The deal, which is expected to be completed in early February 2011, will also broaden the geographical reach of the combined group, remarked Hans Pettersson, Superfos’ president and CEO. Superfos has a strong presence in the Nordic region, where RPC currently has no manufacturing facilities, he explained. In the UK, Superfos has just one manufacturing site, whereas RPC has 12, he added. Jamie Pike, RPC’s chairman, said, "This is a significant acquisition for RPC which is consistent with our strategy of growing the business organically and through acquisition. This acquisition is an excellent strategic and geographic fit.”

Superfos, which is owned by Swedish private equity companies IK Investment Partners and Ratos, has nine production facilities across the Nordic region, France, Poland, Spain, Belgium and the UK and employs more than 1,300 people. For 2009, it recorded sales of EUR 294.5m and EBITDA before non-recurring items of EUR 52.3m.

RPC expects the acquisition to boost earnings in the first full year of ownership, and to result in pre-tax cost synergies of at least GBP 10m (EUR 11.8m) per year within the third year of ownership. RPC said it intends to fund the acquisition through a rights issue and a new EUR 130m loan facility. The company aims to raise GBP 88.8m in the rights issue.