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RPC set for BPI takeover

Rigid plastics packaging group RPC has agreed a £261m deal to buy a leading producer of polythene products.

Northampton-based RPC and British Polythene Industries (BPI) have agreed on a cash and share offer.

Based on the closing price of 782p per RPC share on 8 June, the offer represents a premium of approximately 32%.

BPI is one of the largest recyclers of waste polythene film in Europe, having developed techniques for processing a range of materials from packaging waste to post-use agricultural plastics.

Chairman Cameron McLatchie said his business should benefit from the ability of a larger group to expand internationally.

“The past 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 our shares.

“RPC has recognised the value inherent in our business and prospects by making an offer at an attractive premium to the share price.

“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.”

Meanwhile, RPC chief executive Pim Vervaat said the offer meant his company was taking a step towards 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 whiet 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.”

Subject to the conditions and certain further terms, including the acceptance by RPC shareholders, the offer is expected to become effective by mid-August.

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