Apollo acquires RPC packaging group in £3.3bn

apollo-acquires-rpc-packaging-group-in-3-3bn

RPC shareholders will receive 782p for each share in cash

Private equity firm Apollo Global Management has finalized the deal at £3.3bn to buy RPC, one of Europe’s largest producers of plastic packaging, ending more than a quarter of a century on the stock market for the FTSE 250 group.

RPC shareholders will receive 782p for each share in cash, a 15.6 per cent premium from the closing price on September 7 of 683.6p, the last day before the talks were confirmed. The final offer represents a 7.6 per cent premium from RPC’s closing price on Tuesday and will not be increased.

RPC said it accepted the offer because it is mindful of the risks to the business posed by the current political and macro-economic environment and because its share price had for some time undervalued the performance and prospects of the business.

The offer price represents a 16% premium to RPC’s closing share price on Sept. 7, the last day prior to the start of the offer period.

The RPC announcement confirmed a report by The Wall Street Journal earlier this week that Apollo was in advanced talks to acquire RPC for more than $3.8 billion, after a protracted negotiation against the backdrop of mounting uncertainty over divorce talks between the European Union and the U.K.

 

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