RPC Group PLC Proposed Acquisition of ESE World B.V. (8942R)
15 December 2016 - 6:00PM
UK Regulatory
TIDMRPC
RNS Number : 8942R
RPC Group PLC
15 December 2016
15 December 2016
RPC Group Plc
Proposed Acquisition of ESE World B.V.
RPC Group Plc ("RPC"), a leading international design and
engineering company of plastic products for both packaging and
non-packaging markets, today announces its proposed acquisition of
ESE World B.V. ("ESE" or the "Company") from Stirling Square
Capital Partners for a consideration of EUR262.5 million subject to
customary adjustments (the "Proposed Acquisition").
ESE is Europe's largest "pure play" temporary waste storage
solutions provider with well-known regional and pan-European
brands. The Company services a broad customer base ranging from
local municipalities to private waste service providers. ESE's
manufacturing footprint comprises one facility in Germany and one
in France, in addition ESE has one R&D centre in Germany.
Overall the Company employs approximately 600 full time employees.
For the year ending 31 December 2016, the Company is expecting to
achieve revenues in excess of EUR200 million whilst consuming circa
45kt of polymers. Björn Hedenström, Chief Executive Officer of ESE,
will continue to lead the business which will be an independent
business unit within the RPC Promens division going forward.
RPC will fund the consideration through its existing debt
facilities.
Highlights of the Proposed Acquisition
The Proposed Acquisition of ESE represents a strategic
opportunity to enter into a high added value polymer consuming
segment in a stable and growing European market, with good
management and well-established market positions supported by
industry recognised branded products. The Proposed Acquisition
represents an excellent fit with RPC's Vision 2020, meeting RPC's
strict acquisition criteria and building on RPC's successful
acquisition history in Europe. Other highlights of the Proposed
Acquisition include:
-- Strategic opportunity to acquire an established growth
platform in the European waste storage solutions market.
-- Acquisition of a complementary business to RPC's existing materials handling business.
-- Enhances the Group's overall polymer procurement position.
-- Provides an enlarged platform to generate cost, purchasing and efficiency savings.
-- Acquisition expected to be earnings accretive from year 1
with ROCE in excess of WACC, whilst RONOA and return of sales
levels are expected to be comfortably ahead of the minimum hurdle
levels of 20% and 8% respectively.
Pim Vervaat, Chief Executive of RPC, commented:
"The acquisition of ESE provides yet another good opportunity
for RPC to expand its product offering with a quality growth
platform in Europe. The combination will further enhance the
Group's overall scale creating good opportunities for procurement
and efficiency synergies. I look forward to working with Björn and
the management team to take ESE to the next stage of its strategic
development."
The Proposed Acquisition is conditional upon obtaining certain
regulatory approvals from competition authorities in certain
jurisdictions and is expected to complete in the first quarter of
2017.
For further information, please contact:
RPC Group Plc: +44 (0)1933 410064
Pim Vervaat, Chief Executive
Simon Kesterton, Group Finance Director
Thomas Saunderson, Head of Corporate Development
Rothschild - Financial Adviser: +44 (0)20 7280 0000
Charles Montgomerie
Yuri Shakhmin
FTI Consulting: +44 (0)20 3727 1340
Richard Mountain
Nick Hasell
Forward looking statements
This announcement contains (or may contain) certain forward
looking statements with respect to certain of RPC's current
expectations and projections about future events. These statements,
which sometimes use words such as "anticipate", "believe",
"intend", "estimate", "expect", "forecast", "project", "hope",
"plan", "assume", "positioned", "will", "shall", "may", "aim",
"predict", "should", "continue" and words of similar meaning and/or
other similar expressions that are predictions of or indicate
future events and/or future trends, reflect RPC's beliefs and
expectations at the date of this announcement and involve a number
of risks, uncertainties and assumptions that could cause actual
results and performance to differ materially from any expected
future results or performance expressed or implied by the forward
looking statement.
Statements contained in this announcement regarding past trends
or activities should not be taken as a representation that such
trends or activities will continue in the future. The information
contained in this announcement is subject to change without notice
and, except as required by applicable law, neither RPC nor any of
its affiliates assumes any responsibility or obligation to update
publicly or review any of the forward looking statements contained
herein. You should not place undue reliance on forward looking
statements, which speak only as of the date of this
announcement.
Disclaimer
Rothschild, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the
Prudential Regulation Authority in the United Kingdom, is acting
solely for RPC in relation to the Proposed Acquisition and nobody
else and will not be responsible to anyone other than RPC for
providing the protections afforded to clients of Rothschild, nor
for providing advice in relation to the Proposed Acquisition or any
other matter referred to in this announcement. Apart from the
responsibilities and liabilities, if any, which may be imposed upon
Rothschild by the Financial Services and Markets Act 2000 or the
regulatory regime established thereunder, Rothschild does not
accept any responsibility whatsoever or makes any representation or
warranty, express or implied, concerning the contents of this
announcement, including its accuracy, completeness or verification,
or concerning any other statement made or purported to be made by
it, or on its behalf, in connection with RPC or the Proposed
Acquisition, and nothing in this announcement is, or shall be
relied upon as, a promise or representation in this respect,
whether as to the past or future. Rothschild accordingly disclaims,
to the fullest extent permitted by law, all and any responsibility
and liability whether arising in tort, contract or otherwise (save
as referred to herein) which each of them might otherwise have in
respect of this announcement or any such statement.
This information is provided by RNS
The company news service from the London Stock Exchange
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