Europac deal is meant to improve DS Smith's paper integration and strengthen its position on the growing Iberian market.
UK paper, packaging and recycling company DS Smith is aiming to take over the Spanish competitor Papeles y Cartones de Europa (Europac) in a €1.9bn deal. Last Friday, the Spanish securities market commission CNMV informed that DS Smith has filed with the CNMV the application for the authorisation of the proposed acquisition.
According to DS Smith, Europac is a leading Western European integrated packaging business with major focus on Spain and France and diversified customer portfolio with strong position in fast moving consumer goods (FMCG) agri-food and e-commerce sectors. In 2017, Europac produced 940,000 tpy of kraftliner and recycled corrugated case materials and 360,000 tpy of corrugated packaging.
The transaction, worth €1.67bn plus acquired cash and debt of €237m, is expected to complete in the fourth quarter of the year, subject to the receipt of company's shareholders and regulatory approval.
