Plastic business to undergo strategic review; company cancels plans to build new corrugated packaging plant in Spain
Corrugated packaging and corrugated case material producer DS Smith is announcing the acquisition of its competitor Europac, offering €16.80 per Europac share, which values the entire share capital of Europac at €1.67bn. DS Smith said that the transaction, which is planned to be finalised in the fourth quarter this year, is an exceptional scale opportunity to enhance its position in a key packaging growth region.
"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", Miles Roberts, Group Chief Executive of DS Smith, said. Consistent with its strategy to be the leading supplier of sustainable packaging solutions and increasing focus on corrugated packaging, the company has initiated a strategic review of its Plastic business. The company will be looking at "what is the best home for that business", Miles Roberts explained. DS Smith also cancels its plans to build a new corrugated packaging plant in Spain, given the new capacities and market shares it will acquire.