The gross price will be €1.7bn on a cash, debt and, to the extent legally possible and commercially practicable, pension free basis and approximately €1.6bn on a net basis after taking into account a pension price adjustment.
SCA Packaging is the second largest packaging business in Europe and the acquisition represents a significant opportunity for DS Smith to achieve its stated strategic aim of becoming the leading supplier of recycled packaging for consumer goods in Europe.
The acquisition includes a formal offer to acquire the French Business which may be accepted following Works Council consultation.
DS Smith’s group chief executive, Miles Roberts, said: “This acquisition builds on DS Smith’s proven strategy and the successful acquisition of Otor. This is an exceptional opportunity to create value for shareholders by becoming the leading recycled packaging company across Europe – a company that will be better positioned to deliver even better service and innovation to our strong and growing FMCG customer base.
“SCA Packaging is a well invested business with long positions in recycling and packaging and short paper capacity that is very complementary to our strengths. It is a great step in DS Smith’s development and I look forward to working together with the team at SCA Packaging to create an outstanding supplier for our customers and making it a fulfilling place for our staff to work to deliver substantial value for our customers and Shareholders.”
DS Smith’s chairman, Gareth Davis, said: “This acquisition is a unique opportunity, offering the combination of a clear strategic rationale, potentially excellent financial returns and a step change in DS Smith’s capabilities to deliver the recycled packaging service that our customers increasingly want on a pan-European basis.
“We recognise both the opportunities and the challenges that the acquisition will bring and we have planned and invested accordingly. We are focussed and determined to integrate, develop and grow these two excellent businesses as the platform for delivering superior returns for our investors over the years to come.”
Source: DS Smith
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