DS smith to buy Interstate resources

Britain’s DS Smith Plc says it, and its wholly-owned US subsidiary, DS Smith Holdings, Inc. will buy 80% of the total issued share capital of Indevco Management Resources, Inc. (IMRI), the holding company for the Interstate Resources, Inc. group (IMRI and its subsidiaries together are the IRI Group), from Merpas Co. S.à r.l. (Merpas) for $920 million and other considerations.

The IRI Group is a family-owned integrated packaging and paper producer concentrated on the US East Coast, with 19 production sites and about 1,500 employees. For the year ended 31 December 2016, revenues were $618 million.

The Group operates across the entire packaging chain including wood procurement, paper manufacturing, design, packaging manufacturing and customer logistics. US customers accounted for 94% of turnover at the end of 2016 with the most of the IRI Group’s customer base being FMCG and food customers. Smith says the acquisition aligns with “the global convergence of … (its) customers’ requirements and is expected to create a higher quality, higher margin group with more growth potential.”

www.dssmith.com

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