UK-based corrugated cardboard maker DS Smith has completed acquisition of a 80% stake in American packaging firm Interstate Resources from Merpas for $835m.
DS Smith holds the option to buy out the remainder 20% stake in Interstate Resources within five years. The cardboard maker had also assumed nearly $226m of Interstate Resources’ debt.
DS Smith had entered into a definitive agreement in this connection in June end with Indevco Management, the holding company of Interstate Resources.
DS Smith Group CEO Miles Roberts said: “The response from employees and customers has been excellent and trading at Interstate in the calendar year to date is fully in line with our expectations at the time of the acquisition, which supports our confidence in this business.
“We look forward to working with all Interstate stakeholders and building a successful business in North America, as part of DS Smith's overall growth strategy."
Headquartered in Arlington, Virginia, Interstate Resources has a workforce of more than 1,500 employees across nine US states. The company owns two paper mills dedicated for linerboard and recycled corrugated medium, three corrugated sheet plants, two timber and lumber operations along with a corrugated sheet feeder.
According to Indevco Group CEO Neemat Frem, Interstate Resources will reach its full potential by the opportunities created following its acquisition with DS Smith.
Frem added: “The values and expertise of our two groups ensure that our loyal and prospective customers receive the best service from Interstate.
“I extend my personal gratitude to the Interstate team for their continuous dedication and service, and I trust they will always deliver beyond expectation."
Interstate Resources primarily sells its products in the US eastern seaboard with focus on the South and Midwest regions.