£257.9m acquisition of British Polythene Industries and £90.0m placing
On 9 June 2016 RPC and British Polythene Industries (”BPI”) announced that they had reached agreement on a recommended cash and share offer for BPI.
RPC also announced a placing to raise £90.0m to part finance the cash consideration payable under the terms of the recommended cash and share offer for BPI. The placing was undertaken by way of an accelerated bookbuilding process managed and underwritten jointly by Panmure Gordon and Deutsche Bank.
BPI is a leading polythene films producer in Europe which supplies approximately 275,000 tonnes per annum for a wide range of markets including agriculture and horticulture, industrial and consumer products, food and related packaging and recycled products. BPI is also one of the largest recyclers of waste polythene film in Europe, having developed recycling techniques for processing a diverse range of scrap materials ranging from packaging waste to post-use agricultural waste. BPI’s highly-focused businesses provide high quality, innovative polythene products developed for specific markets and applications, delivered to meet the individual requirements of its customers.
The acquisition of BPI is strategically compelling for RPC. It provides an excellent fit with Vision 2020, namely:-
- A unique strategic opportunity to acquire an established flexibles platform in the European polythene films market with strong market positions
- 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 rigids
- An enhancement of the Group’s longer term overall polymer purchasing position
- The RPC Directors believe that the Combined Group will be able to achieve ongoing pre-tax cost synergies of £10m per annum (before integration costs), fully realisable within the first two full financial years following the Offer becoming Effective
Panmure Gordon Role: Panmure Gordon acted as joint bookrunner, underwriter and broker.