RPC Group has proposed to buy Superfos Industries, the Danish-headquartered plastic packaging group for $318.3m.
The British rigid plastic-packaging supplier is planning for a $138.5m rights issue and a $171.9m term loan facility to finance the acquisition.
RPC expects to make manufacturing cost savings through pooling of common product manufacturing and improved procurement. It predicts annual pre-tax cost savings of at least £10m within the third full financial year of ownership.
The deal is expected to close in early February, next year.
RPC Group generated sales for the year to April 2010 of £720m ($1.12bn) and profit of £40.9m ($63.7m).
RPC Group offers packaging products made by three conversion processes, blow moulding, injection moulding and thermoforming.
The group has positions in the beauty and personal care sector, the vending and drinking cup market, the margarine industry, and in multi-layer sheet and packs for oxygen sensitive food products.
Superfos Industries is owned by Nordic private equity firms IK Investment Partners and Ratos AB. The business generated sales of $388.4m and a profit before non-recurring items of $68.9m in 2009. The company has posted an adjusted pretax profit of over $30m on sales of $390m during the period.
News of the deal comes six months after RPC said it was looking for acquisitions as it announced a return to profits in full-year results.