Recommended Final Cash Offer for RPC Group PLC

An announcement released on the London Stock Exchange on Wednesday 23 January 2019 provides details regarding a recommended offer for the RPC Group from the global fund manager Apollo Management Group.

Commenting on the Acquisition, Jamie Pike, Chairman of RPC, said:

"The Board believes that the offer recognises the quality of RPC's businesses and the strength of their future prospects. In July I stated that differing investor views on the appropriate level of gearing was constraining the group's ability to pursue opportunities for growth and, as such, putting pressure on RPC's valuation. I also said that the Board was working to resolve this situation. Today's announcement is the culmination of that process. The Board believes that the offer of £7.82 per share is a good outcome for shareholders and intends to recommend unanimously that they accept this offer." Commenting on the Acquisition, Jamie Pike, Chairman of RPC, said: "The Board believes that the offer recognises the quality of RPC's businesses and the strength of their future prospects. In July I stated that differing investor views on the appropriate level of gearing was constraining the group's ability to pursue opportunities for growth and, as such, putting pressure on RPC's valuation. I also said that the Board was working to resolve this situation. Today's announcement is the culmination of that process. The Board believes that the offer of £7.82 per share is a good outcome for shareholders and intends to recommend unanimously that they accept this offer."

Under point 9 of the document (click button below this article) the Bidder - being Apollo - commented as follows:

“The Bidder believes that RPC represents an attractive investment opportunity, as it believes that the breadth and scale of RPC's operations in plastic packaging will allow it to maintain and further improve its position in product development, innovation and purchasing, as well as to continue to take advantage of the highly fragmented market in the plastic packaging industry in Europe and North America in particular. The Bidder is confident in the overall prospects of RPC's business and the sectors in which it supplies packaging and other plastic solutions, and it is excited to support RPC management team to continue to enhance the quality of its product offering and to grow the value of the business in the longer term. The Bidder also believes that in order to maximise its future growth potential, RPC will be better suited to a private company environment, where both acquisitions and initiatives relating to the performance and development of its businesses can be implemented effectively, with appropriate support, capital and assistance from the Bidder and without the costs, constraints and distractions associated with being a listed company.”

Mylene Paynter