In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497 million) deal to buy Promens Group AS.
RPC is based in Rushden, England, and has 55 operations in 19 countries, including U.S. plants in Morgantown, Pa., and Winchester, Va. The company does blow molding, injection molding and thermoforming, has 11,100 employees and annual sales exceeding £1 billion ($1.57 billion).
Promens, based in Kopavogur, Iceland, has 41 manufacturing plants in Europe, North America, Asia and Africa. The company does blow molding, thermforming, injection molding and rotational molding — Promens claims to be the world's largest rotomolder. The company employs 3,800.
Promens said the deal is driven, in part, by capital restrictions that Iceland imposed in 2008 when that country's three largest banks collapsed. Since then, there have been strict rules on movement of capital in and out of the country.
RPC said in a statement its board believes Promens represents “an excellent fit for RPC” and the combination of the two businesses will create a significantly enhanced European platform in rigid plastic packaging.
The acquisition, it added “extends RPC's reach and capabilities across several end markets at once, creating significant opportunities for enhanced combined growth, scale and cost base reductions.”
RPC said the Promens acquisition will add niche technologies to its existing capabilities, enhance the scale in European polymer buying through central coordination of purchasing across the enlarged group. It expects polymer consumption to increase from approximately 325,000 metric tons annually to approximately 445,000 metric tons, or 4.5 percent of the total European output of polymers for rigid plastic packaging
Pim Vervaat, chief executive of RPC, said: “RPC and Promens are a natural fit and we look forward to developing our enlarged platform to deliver superior value for our customers and shareholders in the future.”
