International Paper has completed the acquisition of DS Smith’s two packaging businesses in North Western France and Portugal for €63m (£56m).
DS Smith has divested two packaging businesses to International Paper to meet its commitment made to the European Commission.
The sale is said to fulfil its commitment in relation to the clearance of €1.9bn (£1.7bn) acquisition of paper and packaging products manufacturer Papeles y Cartones de Europa (Europac).
The acquisition of Europac, which was first announced in June 2018, was completed in January this year.
DS Smith produces and markets corrugated packaging and plastic packaging products, while Europac produces and sells paper, corrugated board and corrugated packaging products.
DS Smith is active across the European Economic Area (EEA), and Europac has operations in France, Spain and Portugal.
DS Smith group chief executive Miles Roberts said: “We are delighted to have completed this transaction, which ensures that the business and colleagues have found a good home at an attractive price for the business.
“The integration of Europac is progressing well and we are very pleased with the quality of our customer offering in the region.”
In March this year, sustainable packaging solutions provider Liqui-Box has agreed to acquire DS Smith’s plastic division for an enterprise value of around $585m (£465m).
Based in Chicago, the plastic division of DS Smith provides sustainable flexible packaging and dispensing solutions, plastics extrusion, injection moulded and foam products.
With more than 2,000 employees, the plastic division operates 26 facilities in North America, Europe and Asia-Pacific. The company intends to use the cash proceeds from the deal to reduce its financial gearing with medium-term target of net debt/EBITDA.
International Paper provides renewable fibre-based packaging, pulp and paper solutions for its customers in 150 countries. It employs over 52,000 people.
In June 2018, International Paper dropped from the proposed €9.5bn (£8.5bn) acquisition of Irish packaging firm Smurfit Kappa.
In February same year, the company offered €8.6bn (£7.6bn) to acquire Smurfit Kappa, which was rejected by the company.