<B>British Firm Buys U.S. Operation</B>

A UK packaging, David S Smith, agreed to buy Packaging Systems LLC, which trades under the name Rapak.

The UK company already has a US-based plastics packaging business called Formative Engineering.

David S Smith, which has reported its full-year results, says growth in Europe, where a number of countries are now beginning to move out of recession, has helped to offset the impact of strength of the pound against the euro and the increasing cost of raw materials.

David S Smith chairman Antony Hichens said: "All our businesses are benefiting from the recovery in the European economy and the threat of a further weakening euro appears to be receding."

At the same time, New-Jersey based shrink film packaging specialist Sealed Air said it is to buy UK company Dolphin Packaging for £79 million. The cash offer values Dolphin shares at 330p.