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DS Smith completes SCA takeover

Recycled packaging and paper film DS Smith has completed its acquisition of Svenska Cellulosa Aktiebolaget Packaging (SCA), the company has announced.

DS Smith said it paid €1.582bn (£1.280bn) net of cash and external debt on completion of the deal on 30 June.

The company said the acquisition, announced in January, would provide access to new European markets, increase ability to develop new products.

It added the deal would deliver pre-tax cost synergies from procurement and operational efficiencies of €75m and cumulative capital benefits of €40m within three years.

Miles Roberts, group chief executive, said: “The SCA Packaging business is very complementary to DS Smith’s strengths and creates a significantly enlarged geographic footprint.

“Together, we are now better positioned to meet the needs of our pan-European customers, deliver higher standards of customer service and drive forward product innovation.

“We are very excited about the opportunity to create an outstanding supplier for our customers and to make DS Smith a fulfilling place for our staff to work.”

Last week the firm reported a 44% increase in pre-tax profit of £110.2m for the year to April 2012 and a 12% revenue growth to £1,969.4m.

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