Berry buying packaging supplier RPC Group for $4.4 billion

After weeks of talks, packaging giant Berry Global Group Inc. is purchasing UK-based RPC Group Plc for US$4.4 billion, in a move that will create one of the world’s largest plastic packaging companies.

Evansville, Indiana-based Berry’s offer trumped a rival purchase offer made by private equity firm Apollo Global Management.

Headquartered in Northamptonshire, RPC is one of Europe’s largest suppliers of plastic packaging.

Berry was once a holding of Apollo, and boosted the cash part of its proposal to win backing for the acquisition from RPC’S board.

The deal will give Berry, which supplies packaging to brands including Procter & Gamble Co., Coca-Cola Co., and Starbucks Corp., access to more European customers such as L’Oreal SA and Henkel AG. Berry currently generates more than 80 per cent of its revenue from North America. Berry will also more than double its facilities to 293 worldwide.

“The combination of RPC and Berry would create a leading global plastics products design and engineering company and represents a strong strategic fit,” RPC chairman Jamie Pike said in a statement. “Both companies are highly complementary in terms of product portfolio, customer base, polymer conversion technologies and geographic footprint.”

“This transformational combination will create a strong global leader in plastic packaging and recycled solutions that enhance our organic and inorganic growth opportunities moving forward,” Berry boss Tom Salmon added in the statement.

The purchase is expected to close early in the third quarter.