Source - SMW
DS Smith and US subsidiary DS Smith Holdings Inc have agreed to acquire 80%  of the total issued share capital of Indevco Management Resources Inc (IMRI), the holding company for the Interstate Resources Inc (IRI Group).

Consideration was about $920m. It was to acquire the stake from Merpas Co. S.a.r.l. 

It would also assume or procure repayment of 100% of the IRI Group's financial indebtedness at completion, expected to be about $226m. 

DS Smith intended to satisfy the consideration through a payment of $846m in cash, to be satisfied out of the proceeds of a roughly £285m cash placing, utilisation of up to £400m from a new bridge facility and the rest from existing cash resources.

It would also issue consideration shares with a value of $300m to Merpas.

"We are delighted to announce the proposed acquisition of Interstate Resources, a well-positioned and attractive entry point for us into the US market," said CEO Miles Roberts.

"We have seen significant customer pull for our innovative packaging solutions in the US and are excited by the opportunity to grow and support our customers' needs over this large and growing market. 

"It is a further important step in our strategy, further building a higher quality, higher margin group with more growth potential. We very much look forward to working with all the employees, customers and suppliers of Interstate Resources."

Separately, DS Smith posted a FY pretax profit of £264m, up 31% on the year. Its revenue for the period was £4.78bn, up 18%. Dividend per share was 15.2p, up 19%.