Private equity firm Apollo Global Management has made it to the headlines regarding its advanced level acquisition discussions with the RPC Group, Europe’s biggest plastic packaging maker, for over $3.8 billion.
As per trusted sources, RPC has extended the deadline to 23 Jan for Apollo to amplify the final offer or consider the deal as cancelled. However, people familiar with the development claim that a deal could be closed very soon.
Private equity has forever been enticed by the sector’s reliable cash-flow and growing demand from e-commerce, with a series of takeovers initiated by major packaging players further spurring their interest, claimed sources.
RPC, which conducts business in 34 countries, recently witnessed a market capitalization of $3.8 billion. In September the company was in talks over a potential sale to Apollo and Bain Capital, a U.S.-based private equity firm, while the deadlines to make a final offer extended repeatedly since then, RPC stated.
According to a news report published by Proactive Investors UK, Apollo’s shares in RPC plummeted last year, presenting a buying opportunity given that it could address the firm’s challenges like the restriction on plastic waste in UK and EU. The report further mentioned that Apollo is under pressure to invest the proceeds it has raised from pulling out auctions from major acquisitions including the purchase of Dutch paints maker Akzo Nobel NV’s specialty chemical business. If reports are to be believed, the private equity firm is also approaching a deal to acquire Arconic Inc, a U.S-based manufacturer of aluminum products. Under the terms of the deal that’s set to be announced soon, Apollo is estimated to pay between $21 and $22 per share. The deal will signify a 10 percent premium or more, since the shares were recently trading right over $19. Meanwhile, Arconic’s shares surged about 4 percent, while Apollo’s shares surged 2 percent, cited credible sources.
