The offer price of €16.80 per Europac share values the entire share capital of Europac at €1,667 million with an implied enterprise value of €1,904 million.
Europac is a leading, Spanish listed, approximately 42 per cent. family owned, highly complementary, vertically integrated packaging business. Europac has a diversified customer portfolio with strong customer relationships and FMCG orientation.
DS Smith’s transaction expenses and the refinancing of Europac debt will be financed from a rights issue to raise approximately £1,000 million net of expenses, which has been fully underwritten on a standby basis, and a new committed debt facility of £650 million.
The acquisition is conditional on the receipt of acceptances from Europac shareholders representing at least 50 per cent. plus 1 share of the entire share capital of Europac, receipt of regulatory approvals and the approval of DS Smith shareholders.