DS Smith to acquire EcoPack and EcoPaper for $244m
EcoPack and EcoPaper is a family-owned integrated packaging and paper group in Romania. EcoPaper and Repap, its recycling subsidiary, are involved in the recycling of more than half of the total waste paper collected in the country.
It makes packaging for the bakery, beverage, milk, fruit and vegetables and pizza sector.
Miles Roberts, CEO, DS Smith, said by acquiring the businesses it will be able to serve customers in ‘this high growth area’ as well as supporting the wider Eastern European region.
“We continue to grow very strongly throughout Eastern Europe,” he said.
“This exciting acquisition will further expand our position and capability, providing an important platform for the continued development of our innovative 'performance packaging' program in the region.”
Business includes packaging assets and a paper machine, built in 2017, that specializes in high quality, lightweight paper.
“The business has grown strongly over many years and is primarily focused on serving the local FMCG market,” added Roberts.
“It is very complementary to our customer and asset base providing an excellent opportunity for further growth as well as significant cost synergies.”
Completion is expected within DS Smith’s third fiscal quarter, following Romanian Competition Authority approval and the satisfaction of other customary closing conditions.