British plastic packaging supplier RPC Group Plc will acquire Iceland-based plastic products maker Promens Group AS for 386 million euros (306.73 million pounds) to strengthen its position in Europe and help satisfy its increasing need for polymer.
The company said it would raise about 200 million pounds ($316 million) through a fully underwritten 1-for-3 rights issue at 320 pence each to partly fund the deal.
RPC’s business include making packaging for Nivea creams and Nescafe coffee capsules and it operates 50 plants, mostly in Europe but also in the UK, the USA and China.
Privately owned Promens, which has grown through acquisitions, has 40 plants, including in France and eastern Europe.
Promens is a leading global plastics manufacturer operating 41 manufacturing facilities in Europe, North America, Asia and Africa. The company manufactures a wide range of products, including packaging for food, cosmetics, chemicals and pharmaceuticals,
Promens makes a wide range of packaging products including recyclable and airless cosmetics packaging for natural and organic cosmetic brands. It also creates high-end solutions in beauty packaging and recently launched a sustainably-sourced wooden cap for its cosmetic jars.
RPC said the Icelandic company’s operations in China and India would help it reinforce its presence beyond Europe.
“The growth is very much outside of Europe and as disposable incomes rise in India, China and also Latin America, our customers have needs,” RPC chief executive Pim Vervaat told Reuters.
RPC said revenue from continuing operations rose 12% to 588.9 million pounds in the six months ended September 30, boosted largely by acquisitions. Like-for-like revenue rose 4%.
The acquisition of Promens is RPC’s fourth significant deal in two years, including one that gave it five plants in China. The latest RPC deal is expected to close by the end of March 2015.