International rigid plastic packaging supplier RPC Group has announced plans to acquire ACE for an initial consideration of approximately $301m, and a total consideration of up to $430m.

By issuing around 8.5 million new ordinary shares to the shareholders of ACE, a manufacturer of plastic injection moulded components and injection moulding tools, RPC proposes to fund the initial $301m consideration, while the balance will be funded through a new revolving credit facility arranged alongside the acquisition and existing cash reserves.

ACE has generated revenues of HK$1,355m and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of HK$314m with growth rate of 25% and 38%, for the year ended 31 December 2013.

RPC Group chairman Jamie Pike said that the acquisition will support the company to progress as a supplier of rigid plastic solutions to customers globally.

"The acquisition represents a strategic move for RPC, establishing a strong and well-invested manufacturing footprint in the Far East where we believe there is an opportunity for continued high growth," Pike added.

According to RPC, the acquisition of ACE will enable the company to develop broader relationships with its existing customers and have the scope to realise additional operating benefits over time.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

RPC group chief executive Pim Vervaat said: "ACE represents an excellent opportunity in the context of the group’s growth strategy in line with ‘Vision 2020’ to create a meaningful presence outside of Europe."

Headquartered in Hong Kong, ACE produces plastic injection moulded components and injection moulding tools for niche segments within the packaging, lifestyle, medical, power and automotive end markets.