DS Smith to buy 80 percent of U.S. packaging firm Interstate Resources for $920 million

Thursday, June 29, 2017 11:15 am

DS Smith to buy 80 percent of U.S. packaging firm Interstate Resources for $920 million | DS Smith, acquisition, packaging,

LONDON (From news reports) -- DS Smith Plc, a British maker of corrugated cardboard, recycled paper and plastic packaging, said it had agreed to buy 80 percent of Interstate Resources, a U.S. corrugated packaging business, from Merpas Co for $920 million (£709 million).

DS Smith, which has the option to buy the remaining 20 percent over five years, will take on $226 million of the family-owned business' debt.

The deal will immediately add to DS Smith's earnings, giving it an entry into the American market.

DS Smith, which makes corrugated trays, soft plastic containers, transport packaging and display cases, also said it would fund part of the acquisition by raising about 285 million pounds through an underwritten placing of new shares at 10 pence each.

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