Apollo Global is to buy RPC Group for £3.3 billion after months of negotiations.
The acquisition highlights the attractive nature of the packaging sector’s reliable cash flow, driven by demand from online shopping.
RPC, which is Europe’s largest plastic packaging maker, and employs around 25,000 people, announced in September that it was in talks with Apollo over a possible sale.
RPC said last July that shareholder pressure was preventing it from pursuing growth opportunities, after investing heavily to take advantage of Chinese demand as well as to produce more recyclable plastics, prompting fears that higher spending would hit the cash flow.
Chair of the RPC Board of Directors Jamie Pike said: “The board believes that the offer recognises the quality of RPC’s businesses and the strength of their future prospects.”
(Sources: Reuters and Morningstar)