(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