UK-based plastic packaging group RPC has disclosed a “proposed acquisition” of US packaging company Letica Group for $640m (€598m) on a cash-free debt-free basis.
In a 9 February statement, the RPC Group said it had also committed to an additional “earn-out consideration” of up to $150m (€140m) subject to Letica achieving earnings (EBITDA) greater than $140m (€131m) and up to $201m (€188m) over the two-year period commencing on 1 July 2017.
Letica is a North American manufacturer and distributor of rigid plastic packaging and foodservice products serving building and construction, foodservice, food, chemical and retail end markets.
The company operates a wide range of production processes, including injection moulding, thermoforming, paper forming and sheet extrusion, and has an in-house design centre with high quality printing, decorating and labelling capabilities.
According to RPC, the Rochester, Michigan-based Letica has built “longstanding relationships with leading, blue-chip customers in a range of attractive and resilient end markets.”
For the year ended 30 June 2016, Letica achieved revenues of $450m (€421m) and adjusted EBITDA of $57m (€53m).
Letica’s president and chief executive officer, Anton Letica, and vice president of operations and general counsel, Mara Letica, have agreed to remain with the business for the next two years to manage the transition.