Plastic packaging group RPC has launched a £88.8m rights issue to help fund the €240m (£205m) acquisition of European peer Superfos.
A specialist in injection moulded rigid plastic packaging, Superfos has production facilities across the continent, expanding RPC's business into new markets. With a strong presence in food and non-food packaging, the group generated profits before interest and exceptional costs of €52.3m on revenues of €295m last year. RPC predict pre-tax cost synergies of £10m a year to be achieved within three years, and the deal will materially enhance earnings next year, management said.
RPC is asking investors to buy five new shares for every eight owned at a price of 143p, a discount of 47.8 per cent to the closing price before the deal announcement.
