DS Smith has completed the €208m acquisition of EcoPack and EcoPaper, an integrated packaging and paper group in Romania.
EcoPack and EcoPaper is engaged in providing industrial packaging and paper solutions for its customers in Romania.
Ecopack produces a range of ready-made boxes, trays and corrugated sheets as per the customers’ requirements.
It offers the paper solutions to firms such as Mondi, International Paper, Duropack, Rondo carton, Dunapack and VPK.
Ecopaper, along with its recycling subsidiary Repap, is engaged in the recycling of waste paper in the country.
The deal to acquire EcoPack and EcoPaper was signed in October 2017.
The acquisition is a part of DS Smith’s effort to significantly increase its capacity to serve customers in a high-growth region while supporting its existing operations in Eastern Europe.
DS Smith said that the integrated firm’s packaging assets and light-weight papermaking capability would support its product offering.
DS Smith group chief executive Miles Roberts said: “We are looking forward to working with our new colleagues in the Paper mill and Packaging site based in central Romania as we continue to strengthen our operations in this important growth market.
“We continue to grow strongly throughout Eastern Europe and this acquisition will help us meet the increasing demand in the region.”
The UK firm expects that the addition of the Romanian group to its portfolio will expand its customer and asset base while creating significant cost synergies.
DS Smith earlier said that it plans to use its existing cash and debt facilities, as well as issue €35m worth of the company's shares to finance the deal.
Roberts earlier 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.”