€650m acquisition of Global Closure Systems and fully underwritten £232.6m rights issue
On 14 December 2015 RPC announced the acquisition of Global Closure Systems (“GCS”), a leading manufacturer of closures and dispensing systems for the FMCG industry. Since the majority of RPC’s existing sales are within packaging, GCS adds expertise within caps, closures, lids and dispensing systems. The acquisition broadened the group’s product offering within the rigid plastics packaging market, enabling the group to offer a one-stop-stop service to its clients, which include Unilever, Nestle and P&G.
GCS operates five key geographical segments: Central Europe (Germany, Switzerland, Poland and Romania, combined 28% of group sales); United Kingdom (27% of sales), Southern Europe (France, Italy, Spain, 27% of sales); Americas (US, Mexico, 12% of sales); and Asia (China, Philippines, Thailand, 6% of sales). Prior to the acquisition, Previously RPC generated circa 13% of sales from outside of UK/Europe. The acquisition increased the proportion of group sales derived outside of Europe and extended its production footprint into new territories (e.g. Philippines).
The EV of the acquisition was approximately €650m (£470m), representing a historic EV/EBITDA of 6.8x. The acquisition was funded through a mixture of equity (via a £232.6m fully underwritten rights issue) and debt.
Panmure Gordon Role: Panmure Gordon acted as joint global co-ordinator, joint underwriter and joint bookrunner.