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Bids, Mergers and Takeovers

RPC eyes deal

09 February 2017 07:30

RPC Group announces the proposed buy of Letica Group and a fully underwritten rights issue to raise gross proceeds of about £552m.

The upfront consideration to be paid to the Letica shareholders was $490m, and total consideration, which included an earn-out consideration, was up to $640m on a cash-free, debt-free basis.

The additional earn-out consideration of up to $150m would become payable, on a rateable basis, subject to Letica achieving EBITDA greater than $140m and up to $201m over the two-year period commencing on the later of 1 July 2017, and the first day of the month following completion of the deal.

The upfront consideration to be paid for Letica represents a multiple of 8.5-times Letica's adjusted EBITDA for the year ended 30 June 2016.

If the full additional earn-out payment was achieved, the total consideration payable represents a multiple of 6.4-times Letica's average adjusted EBITDA over the Letica Financial Period.

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