EVANSVILLE — Evansville-based Berry Global Group announced Monday that it has purchased RPC Group for about $6.5 billion, according to a news release from Berry.
With the merger comes a new business structure, the company announced.
The combined global footprint will now include more than 290 locations around the world including in North and South America, Europe, Asia, Africa and Australia. And combined the businesses will employ more than 48,000 with sales of about $13 billion, based on the latest financial published financial statements for the companies, the release stated.
The purchase agreement included about $4.3 billion in cash paid for the equity interest in RPC and $2.2 of net debt and estimated transaction-related costs, according to the release. This acquisition "creates a leading global supplier of valued-added protective solutions and one of the world’s largest plastic packaging companies," the release stated.
“We are very excited to move forward together as a global plastic and recycled packaging industry leader, serving thousands of customers with our high-quality, innovative and protective solutions along with the industry’s most diversified and expansive manufacturing footprint,” Berry Chairman and CEO Tom Salmon said in the release. “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.
“We remain 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. We believe this acquisition will further enhance the long-term outlook for our business and will provide a unique value creation opportunity for our shareholders.”
RPC was founded in the United Kingdom in 1991.
Berry's business structure will now include four divisions: Consumer Packaging — International, Consumer Packaging — North America, Engineered Materials and Health, Hygiene, and Specialities.
New appointments made by Berry for these divisions include Jean-Marc Galvez, president of its Consumer Packaging-International Division and Bill Norman president of its Consumer Packaging-North America Division, according to the release.
“Our acquisition of RPC and new business structure will allow us to further develop our presence and best serve our customers in key geographic regions,” Salmon said in the release. “Jean-Marc and Bill have been instrumental in developing a growth strategy promoting advantaged products in targeted markets resulting, most recently, in seven consecutive quarters of organic growth for the Consumer Packaging Division.”
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