Recycled corrugated packaging provider DS Smith (SMDS) has agreed to buy Vienna-based packaging business Duropack for €300m (£221m) in a deal that increases Smith's exposure to "higher-growth" southeastern Europe.
DS Smith says Duropack is a market leader that's well-placed to complement its existing operations in Hungary, Slovakia and Austria, and capable of creating about €12m of cost synergies in the next three years. It will, however, cost roughly €13m to integrate the business, with funding arriving from cash savings created by working capital efficiencies and tight cash management.
Meanwhile, despite a sluggish European economy, Smith reported that volumes remain ahead of the run-rate achieved in the first half of the year. Central Europe and Italy, it said, have been particularly strong.
