SCA deal helps lift DS Smith

City A.M. Reporter
BRITISH packaging company DS Smith said yesterday it expects to save even more from its acquisition of a Swedish recycled packaging business, a deal which helped the company nearly double full-year revenue.

DS Smith last year bought the recycled packaging business of Svenska Cellulosa Aktiebolaget (SCA) for £1.35bn to expand its footprint across northern Europe and the Nordic area.

The company said it now expects to save €120m in costs from the acquisition. It had initially estimated it would save €75m a year after three years of ownership before raising that target to €100m in October.

Pre-tax profit for the year ended 30 April rose 51 per cent to £166.2m from a year earlier.