UK packaging firm RPC Group’s shares dropped six per cent today after it announced a $640m (£511m) US acquisition.
RPC, which makes containers for the likes of Lurpak butter, Philadelphia cheese and Dulux paint, has agreed to buy plastic food-packaging products firm Letica Group.
FTSE 250-listed RPC has announced several other takeover deals in recent months.
Since 30 September, it has agreed deals for seven companies, including Letica, for a total consideration of £850m.
Wells Fargo and Rothschild were named as financial advisers to RPC on the deal, while Deutsche Bank and Jefferies were joint global co-ordinators and joint bookrunners.
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Through the Letica acquisition, RPC is aiming to build up a “meaningful presence outside of Europe”, the company said.
RPC will pay an initial $490m and a further $150m subject to Letica hitting performance targets.
After announcing the deal, RPC’s had fallen six per cent to 999.5p shortly after 3pm on Thursday.
9 February 2017 @ 3:00pmRPC Group (RPC)