DS Smith has agreed a deal to buy the French packaging operations of SCA for €1.7bn (£1.4bn).
Swedish firm SCA has accepted a formal offer from the Berkshire supplier of recycled packaging for its packaging operations, excluding the two kraftliner mills in Sweden.DS Smith made the proposals to acquire SCA Packaging in January, and the acceptance was made following consultations with appropriate work councils.
DS Smith said the deal would help its strategic aim of becoming the leading supplier of recycled packaging for consumer goods in Europe.
Announcing the offer in January, DS Smith group chief executive Miles Roberts said: “This is an exceptional opportunity to create value for shareholders by becoming the leading recycled packaging company across Europe – a company that will be better positioned to deliver even better service and innovation to our strong and growing FMCG customer base.”
Following the signing of the sale and purchase agreement, the transaction process will continue towards completion, which includes a review of relevant competition authorities. The deal is expected to be finalised by the end of the second quarter of 2012.