RPC acquires BPI

RPC Group Plc, global design and engineering company specialising in polymer conversion in packaging and non-packaging markets,  has agreed to acquire the U.K. firm British Polythene Industries PLC for about 261 million pounds (US$374 million) in a combination of stock and cash.

BPI produces polythene films for companies, and manufactures around 275,000 metric tons per year for agricultural, horticultural, industrial and consumer products, as well as food packaging. The company also is one of the largest recyclers of waste polythene film in Europe. The company annually processes more than 73,000 metric tons of material from U.K. sources.

RPC said the acquisition of BPI was “strategically compelling,” and provides the company with an excellent opportunity to enter into a new market.

In announcing the acquisition, Pim Vervaat, CEO of RPC, says, “BPI has a strong product portfolio with attractive market positions in its core markets in Europe. The combination will further broaden RPC's range of polymer conversion technologies in line with global peers.”

Cameron McLatchie, chairman of BPI, says, “BPI’s business should benefit from the ability of a larger group to expand its footprint in Europe and beyond.”

"The last five years have seen consistent improvements in BPI's performance and prospects, but not all of this progress has been reflected in the price or rating of BPI's shares,” McLatchie continues. “RPC has recognised the value inherent in our business and prospects by making an offer at an attractive premium to the share price. BPI's business should benefit from the ability of a larger group to expand its footprint in Europe and beyond. Shareholders will benefit from enhanced liquidity for their investment, and employees will have access to the opportunities available in a larger group. The BPI board is therefore unanimously recommending acceptance of the offer."

According to RPC, the BPI acquisition provides the following benefits:

• An excellent fit with the company’s Vision 2020 of selective consolidation in Europe.
• An opportunity to acquire an established flexibles platform in the European polythene films market with strong market positions.
• An entry into an adjacent polymer consuming market and increasing the range of polymer conversion technologies within the RPC Group, in line with other global players.
• An opportunity to pursue a parallel buy-and-build strategy in flexibles alongside RPC’s existing strategy in rigid plastics.
• An enhancement of RPC’s longer term overall polymer purchasing position.
• An enlarged platform to generate cost, purchasing and efficiency savings.