DS Smith secures 95% Otor stake

In a brief statement today, the firm said: “DS Smith today announces that it has acquired all the shares held directly and indirectly by The Carlyle Group in Otor , together with shares in Otor held by management.

“As a result of this transaction, DS Smith holds directly and indirectly more than 95.00 per cent. of the share capital and voting rights of Otor. The price paid by DS Smith is EUR 8.97 per Otor share.

“In accordance with applicable French regulations, DS Smith will in due course file a draft simplified cash offer in respect of the remaining Otor shares to be followed by a squeeze out, at a price of EUR 8.97 per Otor share.”

The deal was approved by the Office of Fair Trading last month.

Otor, which had sales of EUR315m in 2009 and is the second-largest corrugated packaging producer in France, specialises in supplying FMCG customers.

DS Smith estimates that the combination of its existing French businesses with Otor will allow it to make £7.7m in operational savings within two years.

When the deal was announced, DS Smith chief executive Miles Roberts said that the acquisition would make DS Smith one of the leading corrugated players in France and would help reduce its reliance on the UK operations that are the largest contributor to its profits.

“Extensive due diligence gives us confidence that Otor is a high-quality business with structural growth opportunities, notable in shelf-ready packaging where penetration is markedly lower than in the UK,” said Roberts.

“Otor offers an excellent platform for DS Smith to increase its European sales penetration.”

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