Berry Global to Acquire UK Company
EVANSVILLE - Evansville-based Berry Global Group Inc. (NYSE: BERY) has announced plans to acquire United Kingdom-based design and engineering company RPC Group Plc. The deal is valued at approximately $6.5 billion, including the refinancing of RPC's debt.
The acquisition has been unanimously approved by the RPC board of directors. RPC provides plastic and recycled products for packaging and selected non-packaging markets. The company employs approximately 25,000 people around the world.
"We are highly impressed by the tremendous depth of talent and resources embedded within RPC, and are looking forward to the opportunity to strengthen our combined platform with the wealth of experience and expertise this team has to offer,” said Tom Salmon, chief executive officer of Berry. "We believe this transaction will further enhance the long-term outlook for our business and will provide a unique value creation opportunity for our shareholders. We plan to leverage our combined know-how in material science, product development, supply chain and manufacturing technologies across resin-based applications to integrate quickly and build a best-in-class organization."
The acquisition is expected to close in the third quarter. Berry says the combined company will have total revenue of about $13 billion and 48,000 employees across six continents. The company expects to generate $150 million in annual cost savings as a result of the deal.