Rigid plastic packaging manufacturer RPC has agreed to buy the Derbyshire-based plastic film recycling and manufacturing firm BPI in a cash and share offer worth around £261 million. The agreement was announced to the Stock Exchange today (9 June).
Under the terms of the offer, BPI shareholders will receive 470 pence each for each share in BPI plc and 0.6 of a new RPC share.
RPC, which has its headquarters in Rushden, Northamptonshire, is a global producer of rigid plastic packaging, and said that the deal would allow it to enter the plastic films market ‘through an established platform’.
BPI is a leading polythene films producer in Europe which supplies around 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.
The company is also one of the largest recyclers of waste polythene film in Europe handling scrap materials such as packaging waste and post-use agricultural waste.
BPI operates a wash and granulation plant at Dumfries, Scotland, dry and wash recycling plants at Heanor in Derbyshire and Rhymney, Wales, and a dry recycling plant at Stroud, Gloucestershire.
Products manufactured by the company include refuse and recycling sacks, under the Green Sack brand, ‘Plaswood’ outdoor furniture and landscaping products and plastic construction membranes.
Commenting on the offer, Cameron McLatchie, chairman of BPI, said: “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. 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.”
Pim Vervaat, chief executive of RPC, said: “With today’s announcement, RPC is taking another important step in delivering its Vision 2020 strategy.
“The proposed offer for BPI represents a compelling strategic opportunity for RPC to enter the European polythene films market through an established platform. 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, establish a new growth platform with a strong cost synergy potential whilst enhancing the Group’s overall polymer buying capability.
“I believe the combination of RPC and BPI is an excellent strategic fit and look forward to growing the enlarged platform to continue generating value for our customers and our shareholders.”