The benefits of the CPP packaging business decline in the first half when costs rise

(Reuters) – The British packaging company RPC Group Plc (RPC.L), the goal of a battle for the acquisition of two US private equity firms, announced Wednesday a profit down 4.5% in the first half of the year, affected by rising costs.

Increasing borrowing to finance small business acquisitions has resulted in a 64% increase in net financing costs, RPC said.

The first plastic packer in Europe also said that he continued to sell non-vital business, following the sale of Letica's packaging division, announced in August, for an amount of 95 millions of dollars.

RPC said the investor pressure was preventing it from pursuing some growth opportunities.

Apollo Global Management (APO.N) and Bain Capital are each considering a takeover of CPP, which said this month that the two US companies are expected to make a bought deal offer by December 3 at the latest.

According to RPC, pre-tax profit fell to 154.4 million pounds sterling ($ 197 million) in the six months ended September 30, compared with 161.7 million pounds a year earlier.

The turnover rose 7% to 1.89 billion pounds, benefiting from acquisitions and strong demand in China and the United States.