Packaging firm DS Smith has proposed to acquire Spanish packaging manufacturer Papeles y Cartones de Europac for €1.67bn.

Europac

Image: DS Smith has proposed to acquire Spanish packaging manufacturer Europac. Photo: courtesy of DS Smith.

DS Smith’s offer consisted of €16.8 per Europac share, valuing the business at €1.9bn on an enterprise value basis.

Europac is a Western European integrated packaging business, which serves diversified customer portfolio with focusing more on FMCG customers.

Europac manufactures fully recyclable and biodegradable products made from recycled, natural and renewable raw materials.

It operates across the industry’s value chain ranging from manufacturing recycled and kraftliner paper to the production of sheet corrugated cardboard and boxes

The company designs custom corrugated cardboard packaging solutions, as per the individual requirements of the customers.

Europac operates 14 facilities for the production and distribution of cardboard sheets and packaging solutions.

The firm produces premium packaging solutions, heavy duty packaging solutions, agricultural packaging solutions and shelf-ready packaging solutions.

Europac also produces standard packaging products such as ardboard boxes, trays, wrap arounds, bottom and lid, and interior protection and dividers.

In addition, the firm produces corrugated pallets that serve as an alternative to traditional wooden pallets. These are manufactured by using renewable raw materials, and can be fully recycled.

The acquisition is conditional on the receipt of acceptances from Europac shareholders, as well as subject to regulatory approvals and the approval of DS Smith shareholders.

Recently, DS Smith completed the acquisition of North American packaging company Corrugated Container Corporation (CCC) for an undisclosed amount.

The CCC, which is a family-owned business, has around 190 employees across its four operations in Tennessee, North Carolina and Virginia.

In March this year, DS Smith acquired EcoPack and EcoPaper, an integrated packaging and paper group in Romania, for €208m.

EcoPack and EcoPaper is engaged in providing industrial packaging and paper solutions for its customers in Romania.

With operations in around 37 different countries, DS Smith offers corrugated packaging and plastic packaging solutions to its customers.