Rpc Group Share News (RPC)

(Sharecast News) - RPC Group announced on Tuesday that it has reached binding agreement with Graphic Packaging International for the sale of the foodservice business of Letica Corporation for a pre-tax cash free, debt free consideration of $95m.The FTSE 250 firm said the completion of the transaction remained subject to regulatory approval in the United States.As a result of the sale of the foodservice business, RPC said it had reached agreement to settle the earn-out associated with its acquisition of Letica Corporation in March 2017.An amount of $7.5m would be payable to the former shareholders of Letica upon the completion of the sale of the foodservice business.No further amounts would be charged to adjusting items in respect of the earn-out, the board said, with the cash payment of $7.5m comparing with the 20%, or $29m, earn-out settlement indicated in previous technical guidance.RPC also said preparations for the sale of the spirits closures business at Bridge of Allan, Scotland, were complete and the business was being marketed to interested parties."Further updates on this process will be provided in due course," the board told shareholders.The preparations for the sale of the European injection moulding automotive business, comprising of operations at Zevenaar, The Netherlands; and at Rongu, Estonia, had also started, it added."It should be noted that there is a continuation of the significant underperformance at the operation in Zevenaar as a result of cost inefficiencies arising from last year's new product launch."RPC also said that on 13 August, it acquired PLASgran for a cash free, debt free consideration of £34.5m.Operating from facilities in Cambridgeshire, PLASgran was described as a "leading" UK recycler of rigid plastics, and in the last financial year generated revenue of £27m.The acquisition would "complement and enhance" the existing film recycling activities carried out by the RPC bpi Division, bringing additional annual capacity of almost 50,000 tonnes of rigid recycling alongside the group's existing flexible capacity, delivering a total recycling capacity in excess of 100,000 tonnes per annum."The expanded RPC bpi recycling business will serve the UK and Mainland European markets, with all management of PLASgran retained."