The offer price of €16.80 ($19.65) per Europac share values the entire share capital of Europac at €1.667bn ($1.95bn), with an implied enterprise value of €1.904bn ($2.23bn).
Europac is a Spanish listed, approximately 42% family owned vertically integrated packaging business with a diversified customer portfolio with strong customer relationships and FMCG orientation.
The acquisition, DS Smith’s transaction expenses and the refinancing of Europac debt will be financed from a rights issue to raise approximately €1.171bn ($1.37bn) net of expenses, which has been fully underwritten on a standby basis, and a new committed debt facility of approximately €746m ($872m).
The acquisition is conditional on the receipt of acceptances from Europac shareholders representing at least 50% plus one share of the entire share capital of Europac, receipt of regulatory approvals and the approval of DS Smith shareholders.