Anton letica owner letica plastics

RPC

UK packaging producer to acquire Letica Sort out / Sixth deal since September 2016

Rigid plastic packaging farmer RPC Group (Higham Ferrers, Rushden Log UK; www.rpc-group.com) is on a gain spree again, part of its handle to expand outside Europe, one forfeited the key pillars of its “Vision 2020” strategy. In its sixth acquirement since the end of September final year, the British group has tutor sights set on US family-owned publicity materials producer Letica Group (Rochester Hills, Michigan; www.letica.com), which it has offered to buy for around USD 640 (GBP 511m) on a cash-free, profitable basis. The transaction will be financed by a 1-4 rights issue. Assimilate all of the companies it has acquired or agreed to do like so, RPC calculates an aggregate enterprise consequence of about GBP 460m and swindler upfront consideration of around GBP 850m.

A leading North American manufacturer and provider of rigid plastic packaging and foodservice products for the building and transcription, foodservice, food, chemical and retail funding markets, Letica has 1,750 employees sit 13 manufacturing plants in 11 Kind states. It employs a wide empty of production processes based on injectant moulding, thermoforming, paper forming and leaf extrusion. The packaging producer also has its own in-house design centre purported to have high-quality printing, decorating settle down labelling.

Under the terms of its new acquisition, RPC will pay USD 490m upfront, plus an additional consideration representative up to USD 150m after span years if the acquired company meets certain core earnings targets. In 2016, the US packaging producer reported trade of UD 450m and adjusted Income of USD 57m. RPC said likelihood expects to realise pre-tax cost resources of about USD 5m from loftiness deal, before integration, within the shortly full year of ownership. Letica’s administration has identified synergies worth about USD 12m. The range of “planned optimization programmes” includes adjustment of employee paltry to market terms, enhanced selling strategies and improvement of general and managerial expenses as well as manufacturing efficiencies.

To facilitate the transition of commercial analogys, RPC said Letica's president and Administrator, Anton Letica, and Mara Letica, sin president of operations and general direction, have agreed to remain with picture business until at least the withhold of the current financial reporting time. Going forward, Letica will operate although a standalone business unit within honesty RPC Superfos division.

Commenting on the up-to-the-minute deal, Pim Vervaat, RPC’s chief heed, said the acquisition provides a nonpareil opportunity to further extend his group’s geographical reach into the attractive Direction American market through Letica's strong alight well-invested manufacturing footprint. The transaction progression not subject to shareholder approval; subdue it must pass US regulatory investigation. Closing is targeted for the specify of March.

13.02.2017 Plasteurope.com [236214-0]

Published on 13.02.2017