Rigid plastic purchase

The RPC Group, the UK-based manufacturer of rigid plastic packaging, has bought the UK non-dairy and Mainland plastic packaging business of Nampak, the South African-based packaging producer group, for £23 million.

Nampak’s UK non-dairy and Mainland plastic packaging business comprises three operations in the UK (Woburn Sands, Haltwhistle and Llantrisant), two in the Netherlands (Halfweg near Schiphol and Kerkrade near Maastrict), one in Belgium (Gent) and one in France (Montpont near Tournus).

All the businesses produce blowmoulded plastic containers and serve the lubricating oils, agrochemicals and industrial chemicals markets.

The Nampak operations had a combined net asset value of £31.6m on September 30 2004 and their consolidated turnover and EBITDA for the year were £77m and £6.0m, respectively.

RPC is not acquiring the freehold of Nampak’s Woburn Sands factory and will cease all operations there by October 31 2006. The closure is expected to result in synergies of £3.5m which will be realised progressively over the next two years.

The anticipated cost of closing the Woburn Sands operation, which will be met by RPC, is £6m.

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