Was not expecting to write on this, but the company was brought to attention with today’s announcement regarding media speculation.
RPC Group plc is a leading plastic products design and engineering company for packaging and selected non-packaging markets, with over 33 innovation centres and 191 operations in 34 countries, and employs c.25,000 people. The Group develops and manufactures a diverse range of products for a wide variety of customers, including many household names, and enjoys strong market positions in many of the end-markets it serves and the geographical areas in which it operates. It uses a wide range of polymer conversion technologies in both rigid and flexible plastics manufacture, and is now one of the largest plastic converters in Europe, combining the development of innovative packaging and technical solutions for its customers with good levels of service and support.
Statement re. media speculation
LSE – regulatory news
The Board of RPC Group Plc (“RPC” or the “Company”) notes the recent media speculation and confirms that 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.
LSE – regulatory news
In accordance with Rule 2.6(a) of the Code, each of Apollo Global Management and Bain Capital is required, by not later than 5.00 p.m. on 8 October 2018, to either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.
LSE – regulatory news
The company was trading at 11x earnings before the news.
Speculation has moved the price up 20% (at the time of writing). => 14x multiple.
The company performance over the past 5 years has been acceptable:
| Date | Type | Turnover £(M) | Profit £(M) | Basic EPS | Currency |
|---|---|---|---|---|---|
| 31 Mar 2018 | Full Year | 3,748 | 254 | 61.60 | GBP |
| 31 Mar 2017 | Full Year | 2,747 | 132 | 37.10 | GBP |
| 31 Mar 2016 | Full Year | 1,642 | 55 | 19.40 | GBP |
| 31 Mar 2015 | Full Year | 1,222 | 41 | 18.70 | GBP |
| 31 Mar 2014 | Full Year | 1,047 | 28 | 17.00 | GBP |
One observes continued growth in revenue of 30 to 60% and also feeding into profit and EPS.
It is expected that the company will do well going forwards and given the recent dip in share-price, see this is a logical investment.
