Plastic packaging firm RPC Group has recommended a superior offer from Berry Global that outbids the £3.3bn offer made by private equity group Apollo Global Management earlier this year.
As per terms of the deal, Berry Global will purchase all of the issued and to be issued ordinary share capital of RPC for 793p per share in cash. Aggregate consideration will be about £5bn ($6.5bn), including refinancing of RPC’s net debt.
Berry said the board of directors of RPC has unanimously recommended the superior offer by the company.
RPC is a global design and engineering company, which offers plastic and recycled products for packaging and selected non-packaging markets.
The company, which focuses more on rigid and flexible packaging solutions, serves customers across a range of consumer, industrial, and healthcare end markets.
RPC Group operates seven divisions, including RPC Ace, RPC Bebo, RPC bpi group, RPC Bramlage, RPC M&H, RPC Promens and RPC Superfos.
With 153 manufacturing locations, the company carries out operations in 33 countries and has an employee base of around 25,000 people.
RPC reported net sales and adjusted EBITDA of $4.8bn and $768m for the 12-month period ended 30 September 2018.
The combined company is said to have revenue of around $13bn and around 48,000 employees across six continents.
Subject to customary closing conditions, the proposed transaction is expected to be completed early in the third quarter of this year.
Berry Global Group chairman and CEO Tom Salmon said: “We are extremely excited about the opportunity to welcome the team and global capabilities of RPC to the Berry organization.
“We are highly impressed by the tremendous depth of talent and resources embedded within RPC, and are looking forward to the opportunity to strengthen our combined platform with the wealth of experience and expertise this team has to offer.”
Based in Evansville of Indiana, Berry Global supplies a range of non-woven, flexible and rigid packaging solutions to the customers in the consumer and industrial end markets.