EU Commission clears acquisition of British Polythene Industries by RPC Group
The European Commission has approved on July 4, 2016, and under the EU Merger Regulation the acquisition of British Polythene Industries (BPI) by RPC Group, both based and listed in the United Kingdom.
BPI is a manufacturer of flexible plastic products, namely polythene film, bags and sacks. As one of the leading manufacturers of polythene products, the firm supplies over 270000 tonnes each year for a wide variety of everyday applications and its recycling plants reprocess over 73000 tonnes of UK waste from industrial, commercial, agricultural and domestic sources.
BPI confirms that it has completed the sale of its PRC subsidiary BPI China (formerly Xinhui Alida), announced on 27 January 2016, to Amcor (China) Investment Co., Ltd, a subsidiary of Amcor, the Australian based packaging group (the Disposal).
Total consideration is now estimated to be approximately GBP 9.7 million and the initial consideration of GBP 6.4 million has been received. The balance will be paid in instalments following the agreement of closing working capital and satisfaction of certain post completion arrangements. The working capital, estimated at GBP 2.0 million, is expected to be payable in June 2016, with instalments of GBP 0.3 million in the second half of 2016 and the final instalment of GBP 1 million payable early in 2017. The proceeds will be used to reduce borrowings. The gain on the Disposal, which will be included in the accounts for year ended 31 December 2016, is now estimated to be over GBP 5.0 million.
RPC is a rigid plastic packaging products design and engineering company for the food and non-food, consumer and industrial sectors. The Commission concluded that the proposed acquisition would raise no competition concerns, given the absence of overlaps between RPC’s and BPI’s activities. Indeed RPC focuses on rigid packaging solutions while BPI is a manufacturer of flexible packaging solutions. The transaction was examined under the simplified merger review procedure.