DS Smith Plc has entered into an agreement to acquire EcoPack and EcoPaper, for an enterprise value of circa Euro 208 million, as the company said in the press release received by Lesprom Network.
EcoPack and EcoPaper is a leading integrated packaging and paper group in Romania; family owned for many years. EcoPack and EcoPaper includes both high quality packaging assets as well as a new paper machine, built in 2017, that specialises in high quality, light-weight paper.
The acquisition consideration and repayment of debt, together totalling Euro 208 million, will be satisfied from existing cash and debt facilities, and from Euro 35 million of DS Smith shares to be issued to the vendor.
The acquisition is expected to be earnings enhancing immediately, is consistent with the Group’s medium term financial targets and equates to a post synergy multiple of c. 5 – 6x EBITDA.
