Corrugated packaging recycler DS Smith Group has announced that it has completed its acquisition of rival company Duropack from CP Group 2 BV, a One Equity Partners (OEP) subsidiary.
The group had announced in February its intentions to purchase the Austrian-based recycled corrugated board packaging business, for approximately €300 million (£220m).
On 22 May it was confirmed that the group had received unconditional competition clearance from all of the relevant authorities, and the sale was completed on Sunday (31 May).
The company will now begin trading under the DS Smith name.
Miles Roberts, Group Chief Executive at DS Smith, commented: “We are delighted to complete the acquisition of Duropack, a business that is highly complementary to DS Smith’s geographic footprint and transforms our position in higher-growth South Eastern European geographies. We look forward to integrating the business into the DS Smith Group and are excited about the excellent opportunities for customers, employees and shareholders”.
Duropack has 14 corrugated packaging sites, two paper mills and 18 recycling sites across Austria, Hungary, Bosnia, Bulgaria, Macedonia, Serbia, Slovakia, Croatia and Slovenia.
It had gross assets of €281 million (£201 million) as of 31 December 2014, and earnings before interest, taxes, depreciation, and amortization of €41 million (£29 million) in 2014.
This will be the second acquisition DS Smith has made in the past year, after purchasing the Recycling Division of Middleton Paper for an undisclosed sum in October 2014.
Find out more about DS Smith
Get our weekly digest
resource.co article ai
How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.