Plastic packaging maker RPC Group offers to buy GCS Group

RPC Group Plc said it would buy Global Closure Systems (GCS Group), a maker of closures and dispensing systems, for an enterprise value of 650 million euros ($712 million) to strengthen its position in Europe's plastic packaging market.

RPC said it would pay the sellers, GCS Group and the holding company Financière Daunou, 186 million euros in cash on completion of the deal.

The company would raise about 232.6 million pounds ($353.4 million) through a fully underwritten 1-for-5 rights issue at 460 pence per share to part fund the deal, it said.

RPC, which makes packaging for Beiersdorf's Nivea skin creams and Nescafe coffee capsules, said the balance would be funded by increasing its revolving credit facility to 770 million pounds from 490 million pounds.

The deal, which is expected to close by the end of March 2016, will add to RPC's earning per share in the first full year after completion, the London-listed company said.

GCS, which has an annual turnover of 591 million euros with about 3,500 employees in 2014, finds its roots dating back to 1884 and providers of plastic closure products for the FMCG market, according to the company's website.