Josselin, France 21 February 2013 -- Spanish packaging manufacturer Europac will acquire DS Smith's Caradec corrugated board plant in the French Brittany region from DS Smith for an amount of €21.7m. According to Europac, the French factory consumes 60,000 tpy of corrugated case material and produces 100 million m² of corrugated board per year. The transaction is expected to be completed on 1 March.
The transaction follows DS Smith's acquisition of the SCA Packaging business in 2012. The British company was obliged to sell one of its three corrugated packaging plants in the French Brittany region in order to comply with the EU competition rules. The French and European authorities have given green light to the transaction on 18 and 19 February respectively.
Europac pointed to synergies related to the plant acquisition. Transportation costs could be reduced due to the facility's proximity to the company's Papeterie de Rouen containerboard mill, the manufacturer said.
In addition, the company underlined the strategic importance of the deal which will consolidate its position in Western France. "This acquisition falls under the umbrella of the group's strategic targets for the French market, where we command a share of the packaging segment of 7.4%," said Europac's Chairman José Miguel Isidro. After completion, the company will reach an overall capacity of 460 million m² of corrugated board in its French sites, an increase by 28%. Currently, Europac reportedly produces 280,000 t of recycled containerboard and 360 million m² of corrugated board in France where it operates four sites.