RPC Group PLC (RPC.L) , a supplier of rigid plastic packaging, acquired Maynard & Harris Group Limited, a manufacturer of plastic bottles closures, flexible tubes and jars, for 103.5 million pounds, from funds advised by Caird Capital LLP and M&H management. RPC Group expects the acquisition to complement its personal care product offering, boost revenue from operating activities in US, and add flexible tubes and a range of personal care packaging to the company's product ranges. The Group has funded the transaction using existing debt facilities.
Further, RPC Group expects to realize purchasing synergies of at least 1 million pounds within the first year of ownership and additional commercial and working capital synergies to be achieved going forward.
Maynard & Harris Group employs around 700 people and has generated 76.7 million pounds in revenue for the year ended April 2013. EBITDA of the company for the same period amounted to 13.9 million pounds. RPC management expects Maynard & Harris to report pro forma EBITDA of 15.9 million for the year ending April 2014.
RPC Group stated that the acquisition its expected to enhance earnings significantly in the next financial year ending March 2015.
Friday, the stock closed at 530 pounds on the London Stock Exchange.
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