DS Smith (LON:SMDS) became one of the biggest gainers on the FTSE 100 on Monday, after announcing a deal with Spanish packaging group Europac.
The deal will be worth around 1.9 billion euros, comprising of an offer price of 16.80 euros per share as well as taking on Europac’s debt. DS Smith are hoping to strengthen their business in Europe and take advantage of Europac’s supply chain.
“Europac’s Board of Directors has confirmed that the acquisition is friendly and attractive,” DS Smith said in a statement, adding that it expected annual pre-tax cost savings of 50 million euros, and further integration benefits.
The deal is still subject to approval, but sent DS Smith shares up over 3 percent in early trading. Shares are currently up 3.27 percent at 580.80 (0947GMT).