RPC Group has revealed that it has agreed to be acquired by US-based plastics company Berry Global Group.
The decision follows an earlier bid from asset managers Apollo Global Management, a former owner of Berry. Apollo had tendered a bid of £3.3bn for RPC, but analysts considered this low and expected a counter offer.
Once Berry tabled its own offer, the company was given until late March to decide whether or not to move ahead.
The cash deal with Berry values shares of RPC at 793p, 11p more than the Apollo offer. This sets the total value of the UK packaging manufacturer at £3.34bn. According to sources, Apollo was not prepared to raise its bid.
It is likely that the decision was made based on potential synergies between the two plastics manufacturers, rather than a straight buyout by an asset management company.