The Carlyle Group and DS Smith are in talks to buy Otor, the second leading corrugated board packages producer in France. (Photo: DS Smith Plc)
DS Smith, Carlyle mull majority stake in Otor
(UNITED KINGDOM, 7/9/2010)
International packaging supplier DS Smith Plc and the Carlyle Group announced on Wednesday their exclusive discussions on the acquisition of the entire interest controlled by Carlyle in Otor SA. The transaction would involve the sale of 94.75 per cent of Otor’s the share capital.
Shares detained by Otor’s chairman would also be sold to DS Smith, which would post closing of the transaction control more than 95 per cent of the company’s share capital and voting rights. The price per Otor share offered by DS Smith is EUR 8.97.
Once the transaction is finished, DS Smith intends to launch a squeeze out offer on the listed shares left over.
Otor is France’s number two corrugated board packages producers, with operations across the country. It runs six best-in-class corrugated box facilities, three specialty sheet plants, two paper mills and one packaging machine unit.
Otor’s network of licensees spans countries worldwide. The company made EUR 315 million in 2009.
“The acquisition of Otor realises a number of key strategic objectives for DS Smith. It makes us one of the leading players in corrugated packaging in France with 80 per cent of Otor’s sales derived from the fast moving consumer goods sector (FMCG),” Miles Roberts, Group Chief Executive of DS Smith stated.
“We are confident that Otor is a high quality business with structural growth opportunities notably in shelf-ready packaging. Otor also offers an excellent platform for DS Smith to increase its European presence,” he added.
“Under Carlyle’s ownership and with our continued support, Jean-Marie Paultes and his team have refocused Otor on its core packaging business while dramatically improving its operations and financial results. The company is performing extremely well and has excellent prospects that would be even further improved by the transaction announced today,” declared Franck Falézan, Managing Director, Carlyle.
Closing would be expected to happen in Q4 after obtaining the necessary regulatory and corporate approvals.
DS Smith is a global group listed on the London Stock Exchange. It employs over 10,500 people in 16 countries.
The Carlyle Group is an international alternative asset manager with USD 85.8 billion of assets under management committed to 67 funds as of 31 March.
Otor is an industrial group specialising on manufacturing recycled corrugated board packaging chiefly for transport and food product sales. It has a turnover of EUR 315.1 million working with 1,560 people located on 15 sites in France.
By Natalia Real
[email protected]
www.seafood.media
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