Europac/DS Smith deal not an obstacle for potential IP bid - bankers

06 September 2018 - 03:58 pm UTC

Author(s): by Swetha Gopinath, Joao Grando
DS Smith’s [LON:SMDS] pending acquisition of Europac [BME:PAC] is unlikely to make the UK-based packaging group a less attractive candidate for US rival International Paper [NYSE:IP], which is looking to expand its footprint in Europe, according to three sector bankers.
 
Purchasing DS Smith even after the deal would give IP access to Europe, deliver cost synergies and add a sophisticated portfolio of corrugated packaging products to the US company's offering, these bankers said. Growth in earnings and a dilutive capital raise could even make DS Smith cheaper than previously, according to Dealreporter analytics.