(RTTNews) - DS Smith plc (SMDS.L) announced the proposed acquisition of Papeles y Cartones de Europa, S.A., known as Europac, a Western European integrated packaging business. The offer price of 16.80 euros per Europac share values the entire share capital of Europac at 1.67 billion euros, with an implied enterprise value of 1.90 billion euros. Europac is a Spanish listed, approximately 42 percent family owned vertically integrated packaging business. In 2017, Europac delivered revenues of 868 million euros and had EBITDA of 158 million euros. DS Smith has received undertakings to accept the acquisition from a total of 58.97 percent of the entire share capital of Europac. On completion, DS Smith intends to delist Europac's shares from their listings on the stock markets of Madrid and Barcelona. Following completion of the acquisition, DS Smith is expected to have net debt to EBITDA of less than 2.5 times by the end of the current financial year. On current trading, DS Smith said, since the start of the current financial year, the group performance has continued to be in line with management expectations.
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