International law firm Allen & Overy is advising DS Smith Plc, the
international packaging manufacturer and office products wholesaler, on its
£170 million acquisition of LINPAC Containers from LINPAC Group Holdings
Limited.
The acquisition is being funded through DS Smith’s existing debt facility
and a new loan facility from The Royal Bank of Scotland plc. To reduce this
debt, the company has also announced a fully underwritten rights issue,
which will raise £71 million (net of expenses). The acquisition is subject
to shareholder approval.
Corporate partner Anna Buscall is leading the Allen & Overy team, assisted
by associate Alun Eynon-Evans. Corporate partner Richard Browne is advising
on the rights issue, assisted by associate Laura McLachlan. Banking partner
George Link is advising on the acquisition facility. Antitrust advice was
provided by partner Alistair Lindsay.
Commenting on the transaction, Anna Buscall said:
“This is a significant strategic transaction for DS Smith, as a result of
which it will become the UK leader in corrugated packaging. Our team was
pleased to provide M&A, equity capital markets and bank debt expertise to
bring the transaction together, and enjoyed working closely with the DS
Smith in-house counsel on all those aspects.”
UBS is acting as financial adviser and joint sponsor. Cazenove is acting as
underwriter, joint sponsor and broker.
