Superfos president and CEO Hans Pettersson said the takeover proposal would be brought before its shareholders at the end of January.
UK-based RPC forecast the deal to acquire the Danish injection moulded rigid plastic packaging producer for the food and non-food sectors would be completed in early February 2011 and could add at least ₤10m annually to its balance sheet by 2014.
RPC said the takeover, which will be subject to regulatory approval, would strengthen its capabilities and competitiveness in the open top filled injection moulded plastic packaging market. It also highlighted that it would broadened its product range across new geographical markets and allow it to enter higher growth sectors.
Oxygen barrier
Acquiring 100 per cent of Superfos would give it “exposure to new and innovative products including thin-walled injection moulded packaging and newly developed oxygen barrier products”, said RPC.
It further predicted it would realise higher operating margins thanks to manufacturing optimisation, transfer of best practice and purchasing and cost synergies.
"This is a significant acquisition for RPC Group Plc which is consistent with our strategy of growing the business organically and through acquisition,” said RPC chairman Jamie Pike. “This acquisition is an excellent strategic and geographic fit.”
Superfos, headquartered in Taastrup, Denmark, has over 1,300 employees at nine facilities across the Nordic region, France, Poland, Spain, Belgium and the UK. It converts around 100,000 tonnes of polymer per annum and, in 2009, generated EBITDA before non-recurring items of €52.3m on sales of €294.5m.
RPC said it proposed to fund the deal through the raising of ₤89m from selling off shares through a rights issue and taking out a €130m loan.