- Bonding solutions supplier Scapa Group said it would contest an attempt by customer ConvaTec to terminate a master supply agreement with the company.

Scapa had announced late on Friday that ConvaTec was terminating the agreement with Scapa Tapes North America.

Accompanying the notice was an action for a declaratory judgment concerning the master supply agreement filed by ConvaTec in federal court in New Jersey.

'Neither the company nor Scapa Tapes North America accept that ConvaTec has any grounds to terminate the five year supply agreement in respect of which a three year term remains, nor to pursue its declaratory judgment claim,' Scapa said.

'The company and Scapa Tapes North America have instructed external legal counsel and will strongly contest and defend their rights under the MSA and in response to the New Jersey action in which it will assert and pursue all appropriate rights and remedies.

Scapa said the supply agreement provided for a binding contractual commitment for a minimum of around $30m of revenue per annum.

'The company is assessing the potential profit implications and will issue a further update accordingly,' Scapa said.

At 8:00am: [LON:SCPA] Scapa Group PLC share price was -39p at 255p

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