UK leading packaging firm RPC Group Plc has announced the acquisition of German packaging and film manufacturer Nordfolien GmBH for €75m.
In a 13 March statement, the Northhamptonshire-based company said the move follows its successful acquisition of bpi group in 2016, and part of its growth strategy for its flexibles platform.
"The acquisition will significantly enhance our growth platform in flexibles whilst adding further innovation capability in an attractive market segment,” said Pim Vervaat, RPC's CEO, who said the company had consolidation of the European plastic packaging industry at the core of its strategy.
According to RPC, the acquisition will help improve bpi's market positions in Europe, while providing access to higher growth geographies including Eastern Europe.
Additionally, RPC expects bpi to use some of Nordfolien’s capacity for further growth without incurring additional capital expenditure.
“The deal is expected to be earnings enhancing in the first full year of ownership with an attractive ROCE level,” the company said.
Nordfolien specialises in the design and manufacture of added value polythene films for both industrial and consumer packaging markets.
The Steinfeld, Germany-based business has two sites in Germany and Poland, which include in-house recycling capabilities.
The Nordfolien management team will continue to operate the business from its current locations.
The completion of the transaction is subject to clearance from the Polish and German competition authorities, and is expected in the first half of the financial year ending March 2019.