UK-based DS Smith has received approval from the Board of the Spanish Securities Market Commission (CNMV) for the proposed acquisition of Europac for an implied enterprise value of €1.904bn ($2.2bn).
The deal was signed in June and is expected to strengthen DS Smith’s footprint in Western Europe.
The transaction also includes the company’s debt and is expected to offer annual run-rate pre-tax cost synergies of €50m and additional integration benefits.
DS Smith Group chief executive officer Miles Roberts said: “I am delighted that we have authorisation from the CNMV. We look forward to completing the formal takeover process and integrating Europac into DS Smith to the benefit of all our stakeholders.
“This acquisition is a fantastic opportunity to enhance our customer coverage and offering in this important region.”
Earlier this month, the company received approval from the European Commission (EC) under the EU Merger Regulation for the proposed deal. This was given after the company agreed with the EC that there should be a disposal of two packaging businesses in Western France and Portugal, as part of the transaction.
Europac Group offers a range of paper and cardboard packaging solutions to customers. The company operates facilities in Spain, France, and Portugal, manufacturing sheet cardboard and boxes.
Last year, Europac reported revenues of €868m and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €158m.