RPC
Acquisition of Chinese injection moulding company ACE
 ACE's portfolio includes closures (Photo: ACE Corp) |
Rigid plastic packaging supplier RPC (Rushden / UK; www.rpc-group.com) is expanding into the Asian market by purchasing Chinese injection moulding company ACE Corp Holdings (Hong Kong; www.acemold.com) for up to USD 430m (EUR 312m). ACE manufactures plastic injection moulded components and injection moulding tools for niche segments within the packaging, lifestyle, medical, power and automotive end markets. It has five production plants in mainland China with approximately 3,300 employees.
Pim Vervaat, RPC’s CEO, said: “ACE’s focus on high growth niche segments and its expertise and market position in mould making further enhance RPC’s business model.” The two companies have worked together for several years, he said, and ACE is a long-term supplier of moulds for RPC’s Superfos injection-moulded plastic packaging business.
RPC will pay an initial amount of USD 301m plus an additional USD 129m if ACE achieves a performance target of average EBITDA growth of at least 15.6% per year over the four years to December 2017. The initial USD 301m payment represents a multiple of 7.4 times 2013 EBITDA.
RPC said the acquisition is expected to be completed by early June 2014, and is expected to enable annual pre-tax cost savings of at least GBP 1m. RPC will part fund the deal through a share issue, which is expected to raise approximately GBP 75m (EUR 90m).
The acquisition is part of RPC’s strategy to provide its international customers with high quality packaging of European standards in China. Asia is the world’s largest rigid plastic packaging consumer, with an estimated 30% share of global volumes in 2013, the company said. The Asian rigid plastic packaging market is projected to grow by an average of approximately 10% per year over the five years to 2018, it added.
RPC has already made two acquisitions in the last six months. It acquired UK packagjng company Maynard & Harris in December and then purchased Helioplast, based in Bosnia and Herzegovina, in January – see Plasteurope.com of 18.12.2013 and of 14.01.2014.
Pim Vervaat, RPC’s CEO, said: “ACE’s focus on high growth niche segments and its expertise and market position in mould making further enhance RPC’s business model.” The two companies have worked together for several years, he said, and ACE is a long-term supplier of moulds for RPC’s Superfos injection-moulded plastic packaging business.
RPC will pay an initial amount of USD 301m plus an additional USD 129m if ACE achieves a performance target of average EBITDA growth of at least 15.6% per year over the four years to December 2017. The initial USD 301m payment represents a multiple of 7.4 times 2013 EBITDA.
RPC said the acquisition is expected to be completed by early June 2014, and is expected to enable annual pre-tax cost savings of at least GBP 1m. RPC will part fund the deal through a share issue, which is expected to raise approximately GBP 75m (EUR 90m).
The acquisition is part of RPC’s strategy to provide its international customers with high quality packaging of European standards in China. Asia is the world’s largest rigid plastic packaging consumer, with an estimated 30% share of global volumes in 2013, the company said. The Asian rigid plastic packaging market is projected to grow by an average of approximately 10% per year over the five years to 2018, it added.
RPC has already made two acquisitions in the last six months. It acquired UK packagjng company Maynard & Harris in December and then purchased Helioplast, based in Bosnia and Herzegovina, in January – see Plasteurope.com of 18.12.2013 and of 14.01.2014.
06.05.2014 Plasteurope.com [228185-0]
Published on 06.05.2014
German version of this article...