Smith (DS) PLC Acquisition (9310T)
October 18 2017 - 3:49AM
UK Regulatory
TIDMSMDS
RNS Number : 9310T
Smith (DS) PLC
18 October 2017
18 October 2017
Acquisition of EcoPack and EcoPaper, Romania
DS Smith Plc (the Group) is pleased to announce it has entered
into an agreement to acquire EcoPack and EcoPaper, (collectively
"the Business") for an enterprise value of circa EUR208
million.
The Business is a leading integrated packaging and paper group
in Romania; family owned for many years. It will significantly
enhance our capacity to serve customers in this high growth region
as well as supporting our wider substantial Eastern European
presence. The Business includes both high quality packaging assets
as well as a new paper machine, built in 2017, that specialises in
high quality, light-weight paper, which is particularly well-suited
to supporting our performance packaging solutions.
The Business has grown strongly over many years and is primarily
focused on serving the local FMCG market. It is very complementary
to our customer and asset base providing an excellent opportunity
for further growth as well as significant cost synergies.
The acquisition consideration and repayment of debt, together
totalling EUR208 million, will be satisfied from existing cash and
debt facilities, and from EUR35 million of DS Smith shares to be
issued to the vendor. The acquisition is expected to be earnings
enhancing immediately, is consistent with the Group's medium term
financial targets and equates to a post synergy multiple of c. 5 -
6x EBITDA. Completion is expected within our third fiscal quarter,
following Romanian Competition Authority approval and the
satisfaction of other customary closing conditions.
Miles Roberts, Group Chief Executive, said "We continue to grow
very strongly throughout Eastern Europe. This exciting acquisition
will further expand our position and capability, providing an
important platform for the continued development of our innovative
"performance packaging" programme in the region".
Enquiries
DS Smith Plc +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Director
NOTES TO EDITORS
DS Smith is a leading provider of corrugated packaging and of
specialist plastic packaging, operating across 37 countries and
employing c. 27,000 people. Our vision is to be the leading
supplier of sustainable packaging solutions. For more information,
visit www.dssmith.com
This information is provided by RNS
The company news service from the London Stock Exchange
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