Lurpak container maker aims to spread business globally with £500m US takeover

 
William Turvill
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Portrait of little girl eating buttered toast
FTSE 250-listed RPC Group makes containers for Lurpak, Dulux and Philadelphia cheese (Source: RPC Group)

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.

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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)

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