DS Smith Announces Agreement to Buy Grupo Lantero's Corrugated Business
The corrugated business of Grupo Lanterois has a strong focus in the FMCG sector, operating seven sites across Spain.
June 25, 2015 - DS Smith today announced that it has reached an agreement to acquire the corrugated business of Grupo Lantero, including several operations in which DS Smith currently has a minority holding.
The total consideration, including the assumption of debt, is expected to be about EUR 190 million, subject to closing adjustments. The deal is being financed from existing cash resources and is expected to deliver a return on invested capital above our cost of capital in the second year of ownership, DS Smith said.
According to DS Smith, the business is a well-invested Iberian corrugated producer with a strong focus in the FMCG sector, operating seven sites across Spain.
In a press release the company said, "This acquisition significantly strengthens our operations in Spain, an important and growing market for corrugated packaging, taking our market share to approximately 10%. It also builds on our recent acquisition of Andopack in calendar Q4 2014, where we have seen a very positive customer reaction to our product and service offering.
Miles Roberts, Chief Executive of DS Smith said, "We are delighted to announce the acquisition of the corrugated activities of Grupo Lantero. It is a high quality business that we have known and partnered with for a number of years and significantly increases our offering to Pan-European customers in this large and growing market."
The deal is subject to regulatory approval, which is expected during the third quarter of 2015.
DS Smith is part of a multinational group employing over 20,000 people with revenue exceeding GBP 4 billion. It is the largest integrated paper and packaging company in the UK and the second largest packaging company in Europe. www.dssmith.com.
SOURCE: DS Smith