CREATION OF A LEADING PAN-EUROPEAN RECYCLED PACKAGING BUSINESS
DS Smith Plc (“DS Smith” or “the Company”) announced on January 17th the proposed acquisition of the packaging division of Svenska Cellulosa Aktiebolaget SCA excluding the kraftliner assets (“SCA Packaging”) for a net consideration of approximately €1.6 billion (“the Acquisition”). DS Smith proposes to finance the Acquisition with existing and additional debt and new equity.
SCA Packaging is the second largest packaging business in Europe and the Acquisition is fully in line with the Company’s strategic aim of becoming the leading supplier of recycled packaging for consumer goods in Europe. The Board of DS Smith (“the Board”) believes that the Acquisition is a major opportunity to accelerate DS Smith’s returns to shareholders and will build on the successful acquisition and integration of Otor in 2010.
Commenting on the Acquisition, DS Smith's CEO, Miles Roberts said:
“This Acquisition builds on DS Smith’s proven strategy and the successful acquisition of Otor. This is an exceptional opportunity to create value for shareholders by becoming the leading recycled packaging company across Europe – a company that will be better positioned to deliver even better service and innovation to our strong and growing FMCG customer base. SCA Packaging is a well invested business with long positions in recycling and packaging and short paper capacity that is very complementary to our strengths. It is a great step in DS Smith’s development and I look forward to working together with the great team at SCA Packaging to create an outstanding supplier for our customers, to make it a fulfilling place for our staff to work to deliver substantial value for our customers and Shareholders.”
DS Smith's Chairman, Gareth Davis said:
“This Acquisition is a unique opportunity, offering the combination of a clear strategic rationale, excellent financial returns and a step change in DS Smith’s capabilities to deliver the recycled packaging service that our customers increasingly want on a pan-European basis. We recognise both the opportunities and the challenges that the Acquisition will bring and we have planned and invested accordingly. We are focussed and determined to integrate, develop and grow these two excellent businesses as the platform for delivering superior returns for our investors over the years to come. ”
The full announcement relating to this transaction and a recorded interview with Miles Roberts, Group Chief Executive and Steve Dryden, Group Finance Director, regarding the transaction is available on the DS Smith Plc website www.dssmith.uk.com.
