Smith (DS) PLC Proposed acquisition (1841R)
June 25 2015 - 2:00AM
UK Regulatory
TIDMSMDS
RNS Number : 1841R
Smith (DS) PLC
25 June 2015
25 June 2015
DS Smith Plc
Proposed acquisition of Grupo Lantero's corrugated business
DS Smith Plc ("DS Smith"), the leading provider of recycled
corrugated packaging in Europe, is pleased to announce today that
we have reached an agreement to acquire the corrugated activities
of Grupo Lantero, including several operations in which DS Smith
currently has a minority holding. The business is a well-invested
Iberian corrugated producer with a strong focus in the FMCG sector,
operating seven sites across Spain. This acquisition significantly
strengthens our operations in Spain, an important and growing
market for corrugated packaging, taking our market share to
approximately 10%. It also builds on our recent acquisition of
Andopack in calendar Q4 2014, where we have seen a very positive
customer reaction to our product and service offering. The
acquisition is subject to competition clearance, which we expect
during calendar Q3 2015 with completion shortly thereafter.
The total consideration, including the assumption of debt, is
expected to be circa EUR190m, subject to closing adjustments,
representing a post synergy multiple of between 5 and 6x EBITDA.
The transaction is being financed from existing cash resources and
is expected to deliver a return on invested capital above our cost
of capital in the second year of ownership.
Miles Roberts, Chief Executive of DS Smith said:
"We are delighted to announce the acquisition of the corrugated
activities of Grupo Lantero. It is a high quality business that we
have known and partnered with for a number of years and
significantly increases our offering to Pan-European customers in
this large and growing market. It is a further important step in
our strategy to leverage our scale and strengthen our geographic
footprint and we look forward to working with Grupo Lantero
stakeholders and contributing to the overall growth of DS
Smith."
Enric Holzbacher, Chief Executive of Grupo Lantero added:
"We are very pleased to hand over our corrugated packaging
business to our partner DS Smith. We are convinced that DS Smith
has a strong alignment with our FMCG sector and will further
develop our well established customer relationships. Grupo Lantero
has decided to strategically focus its activities on its
multinational rigid and flexible plastic divisions: Coexpan and
Emsur."
Enquiries
DS Smith Plc +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Manager
Bell Pottinger
John Sunnucks +44 (0)20 3772 2549
Ben Woodford +44 (0)20 3772 2566
NOTES TO EDITORS
DS Smith is a leading provider of corrugated packaging in Europe
and of specialist plastic packaging worldwide, operating across 32
countries and employing 24,700 people. Our vision is to become the
leader in recycled packaging for consumer goods through offering
great service, quality, innovation and environmental solutions to
our customers. For more information, visit www.dssmith.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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