DS Smith makes acquisition in Romania

London-based DS Smith Plc has announced it has entered into an agreement to acquire Brasov, Romania-based sister companies EcoPack and EcoPaper for a €208 million ($245 million) price tag.

DS Smith describes the Romanian firms forming a “leading integrated packaging and paper group” and a family-owned company that has been in existence for many years. (According to EcoPaper’s website, the company was formed more than 150 years ago.)

The acquisition “will significantly enhance our capacity to serve customers in this high growth region as well as support our wider substantial Eastern European presence,” DS Smith says in a news release. The Romanian assets acquired include “both high-quality packaging assets as well as a new paper machine, built in 2017, that specializes in high-quality, lightweight paper, which is particularly well-suited to supporting our performance packaging solutions,” adds the firm.

EcoPack and EcoPaper have “grown strongly over many years,” according to DS Smith, with its business primarily focused on serving the local fast-moving consumer goods (FMCG) market.

The acquisition consideration and repayment of debt, together totaling €208 million ($245 million), will be paid with existing cash and debt facilities and from €35 million ($41 million) of DS Smith shares to be issued to the seller. The acquisition is expected to be within DS Smith’s third fiscal quarter, following necessary regulatory approvals.

DS Smith describes itself as a leading provider of corrugated packaging and of specialist plastic packaging, operating in 37 countries and employing about 27,000 people.