Berry Global Group, Inc. completes acquisition of RPC Group Plc

Berry Global Group, Inc. completes acquisition of RPC Group Plc

393
  • Creates a global leader in plastic and recycled packaging products
  • Produces a balanced franchise across geographies, markets, and substrates
  • Combined pro forma sales of approximately $13 billion
  • Expected annual synergies of $150 million
  • Expected to be accretive to earnings and cash flow

Berry Global Group, Inc. (NYSE: BERY), today announced the completion of its acquisition of RPC Group Plc (RPC) for a purchase price of approximately $6.5 billion, which includes approximately $4.3 billion of cash paid for the equity interest in RPC and $2.2 of net debt and estimated transaction related costs, subject to closing adjustments.  The combination of Berry and RPC creates a leading global supplier of valued-added protective solutions and one of the world’s largest plastic packaging companies.

Berry’s combined global footprint will consist of over 290 locations worldwide, including locations in North and South America, Europe, Asia, Africa, and Australia.  The pro forma combined business will employ over 48,000 people across six continents with sales of approximately $13 billion based on the latest published financial statements of Berry and RPC.

“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”, said Tom Salmon, Chairman and CEO of Berry. “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”, stated Salmon.

The acquisition of RPC was financed with a portion of the proceeds of (i) Berry’s May 2019 sale of $1.25 billion of 4.875% first priority senior secured notes due 2026 and $500 million of 5.625% second priority senior secured notes due 2026 and (ii) a $4.25 billion incremental term loan and a €1.075 billion incremental term loan, which also served to refinance an existing Berry term loan.

Berry is scheduled to announce its third fiscal quarter earnings on August 7, 2019, and will provide an update on its progress at that time.

Goldman Sachs International, Wells Fargo Securities, and J.P. Morgan Securities acted as financial advisors and Freshfields, Bruckhaus Deringer LLP and Bryan Cave Leighton Paisner LLP acted as legal advisors for Berry.

www.berryglobal.com