UK-based rigid plastic packaging supplier RPC Group is planning to acquire plastic packaging manufacturer Promens Group, in a €386m deal.
The move is in line with the company's strategy to meet its increasing demand for polymer, Reuters reported.
RPC will raise more than $316m through a fully underwritten one-for-three rights issue to fund the acquisition, while the remainder will be funded by increasing its revolving credit facility.
Promens currently has 40 plants located across 20 countries. It offers similar plastic conversion technologies as RPC, but also offers rotational moulding and reaction-injection moulding.
It generated around €580m in annual revenues and employs 3,700 people.
Promens CEO Jakob Sigurdsson said: "The combination of RPC and Promens would be a very powerful one that would undoubtedly deliver tremendous value for our customers through the enlarged group's enhanced product, technology and geographic reach, together with the interaction of our respective employees in sharing best practice with their vast experience in the plastics industry."
The acquisition, however, does not include Promens Medical Packaging.
Upon completion of the transaction, RPC-Promens combined is anticipated to generate £1.6bn in annual revenues across 95 plants.
Image: Promens currently has 40 plants located across 20 countries. Photo: courtesy of Promens hf.