Promens Head Office building
Rigid plastic packaging supplier RPC Group, has announced it is to buy Icelandic rival, Promens Group, for €386 million (£307 million).
Promens is a leading European manufacturer of rigid plastic packaging products and rigid plastic components, with a growing platform in emerging markets.
RPC said the acquisition would “significantly enhance” its European platform, extend its global reach and manufacturing footprint as well as expanding its technical capabilities in areas including vacuum forming, reaction injection moulding and expanded polystyrene.
Promens’ manufacturing footprint comprises 40 facilities of which 35 are located in Europe. It employs approximately 3,800 people. For the year ended 31 December 2013, Promens achieved revenues of €582 million (£462 million) and EBITDA2 of €57 million (£45 million).
RPC’s polymer consumption is expected to increase from approximately 325,000 tonnes per annum to approximately 445,000 tonnes or 4.5 pencent of the total European output of polymers for rigid plastic packaging.
“Today’s announcement marks a key strategic milestone for RPC in line with our vision 2020. The combination of RPC and Promens provides a unique opportunity to create an enhanced platform of scale across our core European end markets, The enlarged group will benefit from opportunities to extend its product and technology offering across the full breadth of its combined operations as well as achieve cost efficiencies,” Pim Vervaat, Chief Executive_of RPC, commented.
“RPC and Promens are a natural fit and we look forward to developing our enlarged platform to deliver superior value for our customers and shareholders in the future.”