A £220 million deal for DS Smith to buy recycled corrugated packaging manufacturer Duropack has been agreed.
The proposed purchase of Duropack from CP Group BV will mean DS Smith will expand its customer base across South East Europe that will complement DS Smith’s existing operations in Hungary, Slovakia and Austria.
In 2014, Duropack delivered EBITDA of €41 million (£30.2 million) and EBIT of €22 million on turnover of €273 million.
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Cost synergies of €12 million are expected to be realised within three years of ownership.
The acquisition of approximately €300 million (£220 million) will be financed from existing debt facilities and is subject to competition clearance.
DS Smith chief executive Miles Roberts said: “Duropack is an excellent business and a highly complementary fit. It is a further important step in our strategy to leverage our scale and strengthen our geographic footprint.
“Duropack has high quality assets with market leading positions. We look forward to it contributing to the overall growth of DS Smith in attractive markets where we were previously under-represented.”