Nothing but negotiation

The Gap Partnership

DS Smith acquires SCA's packaging operations

DS Smith has purchased packaging operations from SCA.

17 January 2012

Negotiation strategies may have been used by DS Smith, as it has revealed it has purchased the majority of SCA's packaging operations.

This cost the enterprise €1.7 billion (£1.4 billion) and could help the company extend across Europe.

Chief executive of DS Smith Miles Roberts noted his firm is particularly well-placed in the UK and France, while SCA - the continent's second biggest packaging enterprise - is represented in Eastern Europe, the Nordics, the Netherlands, Germany and Switzerland.

In the near future, there will be a return to growth in the European economy and the acquisition will enable the company to take advantage of this, he explained.

The acquisition presents a "unique opportunity" and will present both challenges and benefits to the business, Mr Roberts stated.

It builds on the organisation's "proven strategy and the successful acquisition of Otor", he remarked.

Mr Roberts was quoted as saying by "Think of the position we will have created for ourselves in the industry by combining."

Posted by Ron Maverick

Source: DS Smith press release, January 17th

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