Sector movers: RPC leads industrials higher after Maynard & Harris purchase

16th Dec 2013 15:44

The general industrial sector was up two per cent on Monday as plastic packaging group RPC pleased investors with the acquisition of smaller peer Maynard & Harris (M&H).M&H is a personal care, healthcare and food packaging business and a "good strategic fit", according to RPC.Analysts at Panmure Gordon labelled it a "very good deal" which should extend both RPC's product range and operational platform. The broker raised its target price for the stock from 584p to 655p and kept a 'buy' rating. "It's fair to say that a decent sized acquisition from RPC has been expected following the outline of strategy from the recent capital markets day, though this comes earlier than expected and with better immediate implications than is the norm."An increased presence in the US (where M&H has been expanding fairly rapidly) is good news given RPC plans for this market, and we would not rule out additional bolt-ons in the medium term."RPC was up 3.68% at 549.5p before the close of trade on Monday, extending its year-to-date rise to over 38%.Sector peers Rexam, DS Smith and Smiths Group were also making decent gains.Top performing sectors so far todayForestry & Paper 10,173.55 +4.02%Construction & Materials 4,168.22 +3.85%Beverages 14,151.80 +2.26%General Industrials 4,346.22 +2.02%Mining 15,808.72 +1.83%Bottom performing sectors so far todayOil Equipment, Services & Distribution 21,542.03 -0.54%BC