RPC Group has sold the foodservice business of Letica Corporation to Graphic Packaging subsidiary Graphic Packaging International for $95 million.
Letica Foodservice is focussed on the production of paperboard-based cold and hot cups and cartons in North America.
The company operates two foodservice converting facilities in Clarksville, Tennessee, and Pittston, Pennsylvania.
The business generated $110 million in revenue and converted around 40,000 tons of solid bleached sulfate (SBS) paperboard in the past year.
Graphic Packaging said synergies from the acquisition will be driven by the integration of additional SBS paperboard tons, lower logistics costs, and other cost efficiencies.
Michael Doss, Graphic Packaging CEO, said : “We are excited to announce the acquisition of the Letica Foodservice assets as it extends our leading position in the growing paperboard-based foodservice market in North America.
“The transaction will further diversify our customer base, enhance our geographic footprint, and provide needed capacity to meet the incremental demand for paper cups resulting from the ongoing shift out of polystyrene foam.
“The transaction is consistent with the strategy we outlined after the combination with the SBS mill and foodservice assets that closed on January 1, 2018, specifically, our intent to grow our foodservice business organically and through acquisitions and drive higher integration levels for our SBS mills.”
RPC Group bought US-based Letica Group just last year in a deal worth up to $640 million. The UK-headquartered company is now aiming to offload non-core units to return money for its shareholders.
RPC also revealed that earlier this month it acquired PLASgran, a UK-based recycler of rigid plastics for £34.5 million.
Source: FoodBev
After eight years with Nestlé, François-Xavier Roger, executive vice president and chief financial officer (CFO), has decided to leave the company to pursue new professional challenges, making way for finance boss Anna Manz. Meanwhile, Unilever announced that Graeme Pitkethly, CFO, will retire by the end of May 2024, and the hunt is on for his successor.
International spirits company Bacardi Limited has announced the appointment of Alicia Enciso to its board of directors. Enciso joins with more than 30 years of experience with multinational Fortune 100 Companies in the food and beverage sector with roles as general manager, president, chief marketing officer and e-business officer.
According to Innova Market Insights, when it comes to beverages, consumers are willing to pay more for what they value most, despite rising inflation. Additionally, consumers want brands that respond to their core values and have the benefits they seek, such as sustainability and functional ingredients.
