FTSE 250-plastic packaging firm RPC Group PLC (LON:RPC) is to sell the Foodservice business of its Letica subsidiary for US$95mln to Graphic Packaging International.
As a result of the sale, RPC has reached an agreement to settle the earn-out associated with the group's acquisition of Letica in March 2017, paying US$7.5mln to the former shareholders of Letica. The cash payment compares with the circa 20% (roughly US$29mln) earn-out settlement previously indicated.
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Meanwhile, preparations for the sale of the spirits closures business at Bridge of Allan, Scotland, are complete and the business is being marketed to interested parties.
The preparations for the sale of the European injection moulding automotive business (comprising operations at Zevenaar, The Netherlands, and at Rongu, Estonia) have started.
In mid-August, the company acquired PLASgran for £34.5mln on a debt-free basis.
PLASgran is a recycler of rigid plastics and is based in Cambridgeshire. In the last financial year, it generated revenue of £27mln.
Shares in RPC were up 1.3% at 774.6p.