Smith (DS) PLC Acquisition (8959O)
May 22 2018 - 8:00AM
UK Regulatory
TIDMSMDS
RNS Number : 8959O
Smith (DS) PLC
22 May 2018
DS Smith plc to Acquire North American
Corrugated Packaging Business
-- Investment includes four facilities in North America
-- DS Smith continues growth drive following acquisition of Interstate Resources
DS Smith plc today announced an agreement to acquire Corrugated
Container Corporation (CCC), a high-quality corrugated packaging
company in North America. The acquisition follows DS Smith's recent
purchase of Interstate Resources, building on the company's paper
and packaging capacity in the region.
CCC is a family owned business employing approximately 190
people across its four operations in Tennessee, North Carolina and
two sites in Virginia. The acquisition of these packaging sites
will significantly boost DS Smith's box-making capacity, and
complements its existing footprint in North America.
CCC's capabilities include a strong focus on high-quality,
sustainable retail ready and display packaging, an area where DS
Smith is achieving strong growth in Europe.
The acquisition is expected to be earnings enhancing immediately
and is consistent with the Group's medium term financial
targets.
Miles Roberts, DS Smith Chief Executive said:
"This is an exciting and fast-paced environment where we are
experiencing strong momentum, following the successful integration
of Interstate. The customer response has been excellent and
increased demand from local and global customers for sustainable,
innovative packaging gives us the opportunity to keep building
capacity.
"CCC's strong reputation and quality machinery assets will help
us to accelerate growth in the region, offering world class
products to many more customers."
Following completion, DS Smith's total operations in North
America will comprise 23 facilities, employing 2,000 people in the
region.
Enquiries
DS Smith Plc
Media
Brunswick
Christina Clark +44 (0)20 7404 5959
Investors
Hugo Fisher, Group Communications Director +44 (0)20 7756 1800
Rachel Stevens, Investor Relations Director
Cautionary statement
This announcement contains certain forward-looking statements
with respect to the operations, performance and financial condition
of the Group. By their nature, these statements involve uncertainty
since future events and circumstances can cause results and
developments to differ materially from those anticipated. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this announcement and DS
Smith plc undertakes no obligation to update these forward-looking
statements. Nothing in this trading statement should be construed
as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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