Plastics giant RPC's shares soar after it confirms takeover talks
Shares in plastic packaging giant RPC soared by a quarter on news it could be taken private in a deal that is likely to value the FTSE 250 company at several billion pounds.
RPC confirmed it was in talks with US private equity firms Bain Capital and Apollo Global Management on Monday, following a report by Bloomberg last week.
As of Friday RPC - which makes bottles, tubs and polythene films and turned over £3.7bn last year - had a market value of around £2.8bn. Its shares have fallen 27pc in the past year to 684p.
But its stock soared 25pc to 856p in early trade on Monday morning.
RPC said: “Preliminary discussions are taking place with each of Apollo Global Management and Bain Capital which may or may not result in an offer for the company. A further announcement will be made when appropriate.”
A deal would be the latest stage in a wave of consolidation in the sector. RPC has grown rapidly by acquiring several of its rivals in recent years including a £35m deal for rigid plastic recycling firm PLASgran last month.
Speculation about a possible takeover has been mounting in recent months after a backlash against plastic and rows among investors over the company’s growth strategy weighed on RPC’s share price.
The company sold the food packaging arm of its Letica business for $95m last month following shareholder pressure to generate higher returns.