FTSE 100 packing firm targets Spanish rival in £1.5bn deal

FTSE 100 packing company DS Smith is targeting a Spanish-listed rival as the latest addition to its buying streak.

The offer for Europac values the entire share capital at €1.7bn (£1.5bn), with an implied enterprise value of €1.9bn.

The business is 42 per cent family owned, but the board has already indicated its interest in the bid.

DS Smith has received pledges from almost 59 per cent of shareholders to accept the takeover, including the executive chair and executive vice chair.

DS Smith said this morning that the acquisition will give the enlarged company an enhanced offer in a key region and stronger supply chain.

Read more: New FTSE 100 firm DS Smith's shares rise as it targets growth

"We have a long-standing relationship with Europac, which is a company we have long admired, given the quality of their assets, employees and customers," said Miles Roberts, chief executive of DS Smith.

"This acquisition will enhance our customer offer in Western Europe, a key packaging growth region, and help us meet the rising demand for our high-quality packaging and sustainable products."

It comes just a few weeks after the company announced its bid for an American corrugated card firm. This was hot on the heels of the takeover of US packer Interstate Resources, as the firm pledges to target growth.

In recent years, DS Smith has added central Europe's Duropack in 2015 and Sweden's Svenska Cullolosa in 2012.

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