Recycled corrugated packaging specialist DS Smith has entered an agreement to acquire Grupo Lantero's corrugated business for €190m.
Based in Spain, Grupo Lantero operates seven sites that produce corrugated products for the FMCG sector. It has more than 2,700 employees in more than 16 countries.
Upon completion of the acquisition, Grupo Lantero will focus on its multinational rigid and flexible plastic divisions, namely Coexpan and Emsur.
With this investment, DS Smith will bolster its operations in Spain, which is an emerging market for corrugated packaging, taking its market share to approximately 10%.
Speaking about Grupo Lantero, DS Smith CEO Miles Roberts said: "It is a high-quality business that we have known and partnered with for a number of years and significantly increases our offering to Pan-European customers in this large and growing market.
"It is a further important step in our strategy to leverage our scale and strengthen our geographic footprint and we look forward to working with Grupo Lantero stakeholders and contributing to the overall growth of DS Smith."
Subject to competition clearance, the acquisition is expected to be completed in Q3 this year.
Grupo Lantero CEO Enric Holzbacher said: "We are convinced that DS Smith has a strong alignment with our FMCG sector and will further develop our well-established customer relationships."
Image: Grupo Lantero produces corrugated products for the FMCG sector. Photo: courtesy of nuttakit via FreeDigitalPhotos.net.