Packaging maker RPC Group eyeing Global Closure Systems

RPC Group, Europe's plastic packaging market leader with a robust portfolio featuring glass and aluminium-packaging solutions, announced it is buying French bottle-top maker Global Closure Systems (GCS Group) for an enterprise value of €650 million.

RPC has been on the prowl looking for deals in eastern and Western Europe over the past few years. The deal marks an exit for private-equity firm PAI Partners whose funds bought GCS Group in 2005 for €583m from Crown Holdings.

Headquartered on the outskirts of Paris, GCS boasts footprints across more than 100 countries. The company specializes in manufacturing plastic lids for mineral water and milk bottles, as well as child resistant closures for pharmaceutical products.

It was reported in October that a combination of trade buyers and private equity funds had submitted indicative bids for GCS Group. RPC said it would pay the sellers, GCS Group and the holding company Financière Daunou, €186m in cash on completion of the deal. The company plans to raise about €232.6 million through a fully underwritten one-for-five rights issue at 460 pence per share to part fund the deal. The balance would be funded by increasing its revolving credit facility to £770 million from £490 million.

The London-listed company said, GCS deal, which is expected to close by the end of March 2016, will add to its EPS in the first full year after completion.