The acquisition cost DS Smith £35m, including assumption of debt, the recycled packaging supplier said in a statement yesterday.
Issuing a trading update alongside the news, DS Smith said performance was in line with expectations, adding that growth was ahead of last year and had been strong in all areas of the business.
“In the first half of this financial year, we have continued to make good progress with our customers, benefiting from our differentiated commercial offering. We have again delivered volume growth ahead of the market, together with improved margins and returns,” Miles Roberts, group chief executive said yesterday. He added that the Andopack deal was an “exciting” development for the company.
DS Smith, which is financing the buy through internal resources, expects the acquisition to deliver a return on invested capital in the second year of ownership. It expects Andopack to help expansion into markets in Madrid and Barcelona, where it is already well established.