RPC Group Acquires Nordfolien
Enhancing the Flexibles Platform
RPC Group Plc, Rushden, UK, an international plastic products design and engineering company, announces the acquisition of Nordfolien GmbH, Steinfeld, Germany, for a consideration of EUR 75 million. Nordfolien is a leading player in the design and manufacture of higher added value polythene films for both industrial and consumer packaging markets. Nordfolien has two well-invested sites in Germany and Poland, including in-house recycling capabilities, and has developed, patented and commercialized a number of innovative, market leading products. The Nordfolien management team will continue to operate the business from its current locations.
After the successful acquisition and transformation of bpi group, which is now generating a return on capital employed (ROCE) in excess of 15%, the acquisition of Nordfolien represents an important next step in growing the RPC Group's flexibles platform. The acquisition will augment bpi's market positions in Europe, as well as providing access to higher growth geographies including Eastern Europe. Nordfolien will contribute to the Group's future growth while affording the opportunity to realize an attractive level of cost synergies, primarily from procurement and best practice exchange. Exceptional costs associated with realizing these synergies are anticipated to be not material, and Nordfolien also has capacity that can be utilized by bpi for further growth without incurring additional capital expenditure.
Completion of the acquisition is subject to clearance from the Polish and German competition authorities, and is expected in the first half of the financial year ending March 2019. Commenting on the acquisition, Pim Vervaat, RPC's Chief Executive, said: "I am delighted to welcome Nordfolien to the RPC Group. The acquisition will significantly enhance our growth platform in flexibles whilst adding further innovation capability in an attractive market segment. Participation in the ongoing consolidation of the European plastic packaging industry remains a core part of RPC's strategy, and through our focus on innovation, sustainability and operating in attractive end markets, we remain confident in continuing to grow organically through the cycle ahead of GDP."
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