Packaging company DS Smith has announced it will acquire Romanian packaging and paper group Ecopack and Ecopaper for €208 million.
On the back of the deal DS Smith aims to serve customers in this ‘high growth region’ as well as support its wider Eastern European presence.
Ecopack and Ecopaper are said to have high quality packaging assets as well as a new paper machine built this year that specialises lightweight paper, which DS Smith claimed is well suited to supporting its packaging solutions.
Largely focused on serving the local fast-moving consumer goods market, DS Smith said that both are ‘very complementary to our customer and asset base, providing an excellent opportunity for further growth as well as significant cost synergies’.
The acquisition consideration and repayment of debt, together totalling €208 million, will be satisfied from existing cash and debt facilities, and from €35 million of DS Smith shares to be issued to the vendor.
Miles Roberts, DS Smith chief executive, said “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.”
DS Smith supplies corrugated and plastic packaging, operating across 37 countries and employing around 27,000 people. Last year it bought UK packaging producer TRM Packaging.
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