The deal will combine two of the largest injection molders in Europe; RPC in the UK makes plastic products for the packaging and non-packaging industry and GCS, based in France, manufactures closures and dispensing systems for consumer products.
RPC to extend its global presence
The deal, approved under the EU Merger Regulation, concluded the proposed transaction would raise no competition concerns because the overlaps between the companies' activities resulting from the proposed transaction are limited.
“The proposed acquisition of GCS provides a compelling opportunity for RPC to expand its product offering with an extensive range of highly complementary closure and dispensing technologies,” said Pim Vervaat, CEO, RPC, at the time.
GCS was created in 2005 with the spinoff of Crown Holding’s beverage and specialty closure business.
For the year ended December 31, 2014, it saw sales of €590.5m euros and earnings before interest, taxes, depreciation and amortization of €82.8m.
Deal will improve RPC’s polymer-buying capabilities
RPC said the acquisition will create 'a significantly enhanced European platform' in rigid plastic packaging and net cost savings of around €15m a year.
GCS is the 14th largest injection molder in Europe, with 23 global production sites; 18 in Europe and the US, Mexico, Thailand, the Philippines and China.
The acquisition will improve RPC’s polymer-buying capabilities. The group said it currently buys 475,000 metric tons of resins annually, alongside GCS’ 135,000 metric tons.
The enlarged group’s polymer consumption was expected to equate to around 6% of the total output of polymers for rigid plastic packaging in Western Europe.
Once the deal is complete, RPC said it would centralize polymer buying, rolling out what it called its own “optimized purchasing strategy.”