Smith(David S)(Holdings) PLC
28 June 2000
ACQUISITION OF RAPAK - US BASED BAG-IN-BOX
PACKAGING SUPPLIER
David S. Smith (Holdings) PLC (the 'Group') has today entered into an
agreement to purchase the entire membership interests of Packaging Systems,
L.L.C., which trades as Rapak, for US$ 25 million debt free, of which US$ 8
million is deferred for three years. A further earnout payment, based on the
first three years' profits, of up to a maximum of US$ 18 million may become
payable after three years.
Rapak is a leading supplier of bag-in-box liquid packaging with manufacturing
facilities in Chicago, Illinois and Union City, California. As at 31 December
1999 the business had debt free assets of US$ 10.8 million and in 1999
recorded earnings before tax and interest of US$ 1.2 million. Rapak will
complement the Group's European bag-in-box liquid packaging operations by
providing wider market coverage, significant proprietary technology and
purchasing and other synergies. It will also fit well with the Group's other
US plastics packaging business, Formative Engineering.
For further information:
Paul Froud, Group Communications Manager
David S. Smith (Holdings) PLC Tel: 020 7932 5000
Tim Spratt, Director
Financial Dynamics Tel: 020 7831 3113
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