February 9, 2017 / 8:49 AM / 2 years ago

Britain's RPC Group to buy U.S.-based Letica for up to $640 million

(Reuters) - British packaging company RPC Group Plc (RPC.L) said on Thursday it would acquire Letica Group, a U.S.-based maker of plastic packaging and food service products, for up to 511 million pounds ($640 million) to expand outside Europe.

RPC will pay 391 million pounds upfront, while an additional 120 million pounds would be payable after meeting certain EBITDA targets over a two-year period, it said in a statement.

RPC also said it would raise gross proceeds of about 552 million pounds through a 1-for-4 rights issue.

RPC shares rose as much as 3 percent to a more than two-month high, before paring the gains. They were trading down 1.8 percent at 1040 pence at 0847 GMT on the London Stock Exchange.

Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Gopakumar Warrier

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