British packaging manufacturer RPC Group announced an agreement to buy Hong Kong-based Ace Corp. Holdings Ltd., a manufacturer of injection mold tools and components. RPG, which supplies packaging for lubricants among other goods, said the deal gives it a platform for growth in Asia.
RPC said it will pay U.S. $301 million initially for Ace and then up to $129 million more depending on its performance over the next four years. RPC officials said they have been trying for three years to acquire Ace.
The acquisition represents a strategic move for RPC, establishing a strong and well-invested manufacturing footprint in the Far East, where we believe there is an opportunity for continued high growth, said RPC Chairman Jamie Pike.
RPC supplies rigid plastic packaging for food service, paints, garden supplies and healthcare. Ace designs and manufactures injection mold machines that make plastics for packaging as well as the automotive, medical and power industries.