UK-based packaging firm RPC Group has signed an agreement to acquire Letica, a US-based manufacturer rigid plastic packaging and foodservice products, for $640m.
Letica is engaged in manufacturing rigid plastic packaging and foodservice products for building and construction, foodservice, food, chemical and retail end markets.
Employing 1,750 people at 13 manufacturing facilities in the US, Letica operates a wide range of production processes, including injection moulding, thermoforming, paper forming and sheet extrusion.
It also has an in-house design centre with high-quality printing, decorating and labeling capabilities.
The acquisition is part of RPC’s strategy to consolidate its position outside of Europe.
Under the terms of the deal, RPC will pay $490m for the shares in Letica, with the option for an extra $150m earn-out if Letica achieves more than $140m in pre-tax earnings.
In future, Letica will be operated as a standalone business unit within the RPC Superfos division.
RPC CEO Pim Vervaat said: "Letica represents an excellent opportunity in the context of the Group's growth strategy to create a meaningful presence outside of Europe.
"The acquisition of Letica provides a unique opportunity to further extend RPC's geographical reach into the attractive North American market through Letica's strong and well-invested manufacturing footprint.”
Scheduled to be completed by the end of March 2017, the deal is subject to shareholder approval, among others.
RPC said it expects to benefit from Letica’s position in a number of ‘growing end-markets’.
In 2016, RPC Group has acquired packaging firm British Polythene Industries (BPI) for about £261m ($379m).
BPI is focused on manufacturing and supplying of about 275,000t of polythene films annually for markets including agriculture and horticulture, construction, industrial, healthcare and waste services, and retail food and non-food.
