DS Smith acquires Duropack, performance in line with expectations

Packaging group DS Smith said on Monday it intends to buy Duropack , a recycled corrugated board packaging business for €300m.

The acquisition is being funded from existing debt facilities and will expand the group's geographic footprint in South Eastern Europe. The group expects to secure the deal during the second quarter.

DS Smith also said it continued to perform in line with expectations during the last three months to 31 January thanks to high volumes.

Despite economic headwinds in many of the group's divisions, the board said it views the future with confidence.

Chief executive Miles Roberts said: "Since our half-year, we have continued to make good progress with our customers, benefiting from our differentiated commercial offering and the ongoing roll out of our design centres.

"Our volume performance has been strong, as the rapidly changing retail environment and consumer buying patterns make well-designed recycled packaging increasingly relevant."

Shares were up 3.63% to 359.58p on Monday at 09:14.