14th Oct 2015 08:00
LONDON (Alliance News) - Recycled corrugated packaging company DS Smith PLC Wednesday said it has bought the Greek corrugated packaging business of Cukurova Group for an undisclosed amount.
DS Smith said the Cukurova business is the market leader in Greece with a turnover of approximately EUR80 million from three production facilities, and a strong focus in the fast-moving consumer goods space.
It added that the transaction is fully expected to deliver the group's medium-term financial targets within three years.
DS Smith also has entered into an agreement to sell its minority stake in Cukurova's Turkish corrugated paper and packaging entities back to Cukurova Group. These entities previously owned the Greek business being acquired, so DS Smith effectively is exchanging minority interest in the wider business for full ownership of the Greek part.
"We are delighted to announce the acquisition of the Greek corrugated packaging activities of the Cukurova Group. It is a high quality and stable business that we have known and partnered with for a number of years. It further strengthens and is very complementary to our recently enlarged presence in the growing region of South Eastern Europe," Chief Executive Miles Roberts said in a statement.
"It is a further important step in our strategy to expand our geographic footprint and to support our customers. We look forward to working with our new colleagues and delivering sustainable and profitable growth in the region," he added.
Shares in DS Smith were trading down 0.3% at 366.00 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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