DS Smith Plc has announced the proposed acquisition of the Duropack business for approximately €300m.
Duropack, a recycled corrugated board packaging business with market-leading positions across South Eastern Europe, is being acquired from CP Group 2 BV, a One Equity Partners subsidiary, informs DS Smith. The company added that the acquisition was complementary to its geographic footprint. Duropack had number one or two market positions in many of the geographies in which DS Smith operated and, combined with DS Smith's existing operations in Hungary, Slovakia and Austria, would have a leading position across South Eastern Europe.
In 2014 the business delivered EBITDA of €41 million and EBIT of €22 million on turnover of €273 million. Cost synergies of €12 million, are expected to be realised within three years of ownership. The additional investment required to integrate the acquisition is circa €13 million, incurred over the first two years.
The acquisition is subject to competition clearance, which we expect in calendar Q2, with completion shortly thereafter.