RPC Group PLC has bought out rival rigid plastics packaging company Maynard & Harris Group Limited (M&H) in a deal valued at £103.5 million.
According to an RPC statement, M&H will operate as an independent business within RPC’s Bramlage cluster and will enhance the Group’s leading personal care product offering in the UK, mainland Europe and the US.
M&H is a major supplier of rigid plastic packaging to the personal care, healthcare and selected food segments, across all blow moulding and injection moulding conversion processes, with a business model focused on high added-value packaging and flexible customer service.
“The acquisition of M&H represents an important step in realising RPC’s strategy of selective consolidation in Europe and the creation of a meaningful presence outside of Europe,” said RPC Group chief executive Pim Vervaat.
Benefits of the move are said to include:
- Complementing RPC’s existing strong presence in European rigid plastic personal care packaging
- Creating a stronger platform for RPC Group in the US operating from two manufacturing sites
- Extending RPC Group’s product ranges to include flexible tubes and an industry-leading range of personal care packaging for short production runs, as well as over-the-counter healthcare container designs
- Pre-tax purchasing synergies of at least £1m are expected to be realised within the first full year of ownership
The acquisition is expected to be “significantly earnings enhancing” for RPC Group in the next financial year ending 31 March 2015.
M&H chief executive David Duffield will continue to lead the M&H management team.
