RPC Group plc, Europe's No. 2 molder of rigid plastic packaging, has bought Helioplast d.o.o., an injection molder involved in similar activities and based in Bosnia and Herzegovina.
RPC acquired Helioplast from its management for approximately 8.4 million pounds ($13 million), with funds sourced from existing debt facilities.
Part of the consideration will be in the form of an up-front payment, followed by a series of deferred payments over the coming three years.
Helioplast, which has around 80 staff, has annual sales of around £7 million and in 2012 generated earnings before interest, tax, depreciation and amortization of approximately £1.4 million.
Beccles, England-based RPC, which a spokesman said had sales activities in the region but no direct manufacturing, believed Helioplast would be a good strategic fit with its Superfos business.
It would extend the geographical reach of its Superfos cluster into the Balkans, provide a strongly managed manufacturing platform and result in synergies the benefits of which would be felt in the first full year of ownership, the group said.
Pim Vervaat, RPC's chief executive, said: "Helioplast occupies a leading position in its home markets and is a strong complementary fit with the Superfos cluster."
Suad Helić, Helioplast's managing director and one of the selling shareholders, is to stay on as head of the new business "with support from the RPC Superfos cluster," the group said.