UK-based RPC Group is planning to purchase North American rigid plastic packaging manufacturer Letica Group for up to $640m.
Under the proposed cash-free and debt-free deal, RPC will pay $490m upfront, as well as an additional $150m after it has met certain EBITDA targets over a two-year period.
Scheduled to be completed by next month, the deal will help RPC to expand its presence outside Europe and fulfil its Vision 2020 strategy.
RPC Group 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.
“We are excited to be able to develop an enhanced platform of scale to support continued organic and inorganic growth in the US.”
Employing 1,750 people, Letica currently has 13 manufacturing facilities in 11 US states.
The company produces rigid plastic packaging and foodservice products for the construction, food, chemical and retail end markets.
It performs injection moulding, thermoforming, paper manufacturing and sheet extrusion, and has its own in-house design centre with printing, decorating and labelling capabilities.
Upon completion of the latest deal, Letica will operate as a standalone business unit within the RPC Superfos division.