Following on from a March report in PRW covering the anticipated purchase of RPC Group by Berry Global Group, Berry has now revealed details of the completed deal.
The combination of Berry and RPC ‘creates a leading global supplier of value-added protective solutions and one of the world’s largest plastic packaging companies’.
The purchase price for RPC was $6.5bn (approx. £5.1bn), including $4.3bn (£3.4bn) in cash paid for the equity interest and $2.2bn (£1.74bn) of net debt and estimated transaction costs.
The acquisition results in a combined group which has pro forma sales of approximately $13bn (£10.28bn), covering a ‘balanced’ selection of geographies, markets and substrates.
Commenting on the deal, Tom Salmon, chairman and CEO of Berry, said: “The acquisition of RPC will give us the opportunity to leverage our combined know-how in innovative material science, product development, and manufacturing technologies to create significant value for our shareholders. Through this shared approach, we anticipate approximately $150 million in annual synergies.”
Berry financed the purchase of RPC in part with the proceeds from a $1.25bn (£988,000) of 4.875% first priority senior secured notes. A further $500m (£395,000) of 5.625% second priority senior secured notes was also used in the purchase. Both are due in 2026.
Incremental loans of $4.25bn (£3.36bn) and €1.075bn (£960,000) were used to refinance an existing Berry term loan.
Berry’s combined global footprint will consist of 290 locations worldwide, including North and South America, Europe, Asia, Africa and Australia.
Berry is due to announce Q3 figures on 7 August.