UK-based packaging DS Smith Plc has entered into an agreement to acquire Romania’s EcoPack and EcoPaper, a leading integrated packaging and paper group on the domestic market, for an enterprise value of about EUR 208 million, a press release informs.
”We continue to grow very strongly throughout Eastern Europe. This exciting acquisition will further expand our position and capability, providing an important platform for the continued development of our innovative ’performance packaging’ programme in the region,” Miles Roberts, DS Smith Group Chief Executive stated.
DS Smith, a maker of corrugated cardboard, recycled paper and plastic packaging, said family-owned EcoPack and EcoPaper’s packaging assets and a paper machine that specialises in light-weight paper would help boost growth and achieve cost synergies.
The acquisition consideration and repayment of debt, together totalling EUR 208 million, will be satisfied from existing cash and debt facilities, and from EUR 35 million of DS Smith shares to be issued to the vendor.
The transaction, expected to be closed in the third fiscal quarter, will add to earnings immediately, DS Smith said.
DS Smith supplies corrugated and plastic packaging, operating across 37 countries and employing around 27,000 employees.