UK-based corrugated cardboard maker DS Smith has agreed to acquire North American packaging company Corrugated Container Corporation (CCC), for undisclosed amount.
Image: DS Smiths intends to boost its box-making capacity through new acquisition. Photo: Photo by rawpixel on Unsplash.
Family owned business, CCC has four operations in Tennessee, North Carolina and two sites in Virginia, US. It employs approximately 190 people across its sites.
CCC is claimed to have better focus on high-quality, sustainable retail ready and display packaging.
DS Smith said that the acquisition of CCC’s packaging sites will significantly boost its box-making capacity in addition to complementing its existing footprint in North America.
The firm expects the acquisition to be earnings enhancing immediately and is in line with its medium term financial targets.
The acquisition follows DS Smith’s recent purchase of US packaging firm Interstate Resources from Merpas for $920m.
DS Smith and its US subsidiary DS Smith Holdings have acquired 80% of the total issued share capital of Indevco Management Resources, the holding company for the Interstate Resources group (IRI).
The IRI Group operates two paper mills for kraft linerboard and recycled corrugated medium, two timber and lumber operations, three corrugated container operations, three corrugated sheet plants, and one corrugated sheet feeder.
Its primary market is the Eastern seaboard of the United States with a commitment to the South and Midwest.
DS Smith is a provider of corrugated packaging and a specialist in plastic packaging. It manufactures packaging with divisions in paper, plastics, packaging and recycling.
The firm operates in more than 37 different countries and employing approximately 27,000 people.