news RPC to pay $640m for Letica Group
UK-headquartered rigid packaging firm RPC Group is to buy Letica, a US-based manufacturer and distributor of rigid plastic packaging for the construction, food service, chemical and retail markets. The deal is worth around $640m (£522m) and is expected to close by the end of March. Located at Rochester in Michigan, Letica has 13 manufacturing facilities and warehouses across 11 US states and posted sales of $540m for the year to 30 June 2016. RPC said it will continue
to operate as a stand-alone business within the RPC Superfos division. CEO Anton Letica and VP of operations Mara Letica will remain until at least the end of the current financial year.
RPC said the purchase is in line with its Vision 2020 strategy “to create a meaning- ful presence outside of Europe”. It will more than double its North American revenues. Letica is said to have a “highly complementary platform” with strong partner- ships with many North
American blue chip customers and a “deep injection moulding expertise with differentiated design and printing capabilities”. Annual cost savings of
around $5m (before integra- tion costs) are anticipated within the second full financial year of ownership, with an additional $12m saving through incremental optimisa- tion programmes. This is the latest in a string of RPC acquisitions. Since September last year, it has bought six companies for an aggregate enterprise value of
Tetrapak invests in closures
Tetra Pak is to invest €24m in a carton closure production operation at its Rayong site in Thailand. The new production operation will open early in 2018 and will be capable of producing more than 3bn closures annually. “The new production
facility will ensure faster delivery for customers across the region, offering a broad range
of exciting closures that meet consumer demand for functionality and convenience,” said Michael Zacka, Cluster Vice President, Tetra Pak South Asia, East Asia and Oceania (SAEA&O). The new production facility
will be located within the
company’s existing Straws and Strips Plant in Rayong. ❙
www.tetrapak.com
Silgan buys part of WestRock
Rigid packaging manufacturer Silgan is acquiring the speciality closures and dispensing systems business of WestRock for $1.025bn. The deal will complete in Q1, subject to regulatory approvals. The WestRock business supplies triggers, pumps, sprayers and dispensing closures for the home, health and beauty markets from 13 plants in North and South America, Europe and Asia. It
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has sales of about $566m. Silgan CEO Tony Allott said
the WestRock business “significantly enhances the scope and breadth of our market leading closure franchise by bringing new capabilities in the highly engineered dispensing systems category”. The deal is expected to be
accretive to earnings within the next two years, with operational cost synergies of
INJECTION WORLD | January/February 2017
$15m anticipated through reductions in general and administrative expenses, procurement savings and manufacturing efficiencies. WestRock itself is moving
towards paper-based packag- ing and subsequent to this disposal announced the $2.8bn purchase of Multi Packaging Solutions (MPS), a US-head- quartered supplier of paper and board packaging. ❙
www.silgan.com
about £460m. The most recent additions, announced in December, were South African firm Astrapak for £79m and ESE World for €262.5m. Astrapak makes rigid plastic packaging for industrial and consumer markets using injection moulding, blow moulding and thermoforming. It had sales of £81m last year. ESE World is one of Europe’s largest temporary waste storage solutions providers with facilities in France and Germany and sales of around €200m. ❙
www.rpc-group.com
Newell snaps up Sistema
US consumer goods giant Newell Brands is to buy New Zealand-based Sistema Plastics, which makes food storage containers under the Sistema brand, for $470m. The deal is expected to completed in Q2. Newell, which makes the Rubbermaid brand of food storage products among many other well-known consumer brands in the US, said Sistema is active in some markets where it is not present. Sistema generated sales
of around $145m last year. Newell said the company’s recently completed 53,000m2 plant close to Auckland airport will provide the capacity required to meet growing demand. ❙
www.newellbrands.com
www.injectionworld.com
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