Packaging company DS Smith has agreed a takeover of Spanish rival Europac in a deal worth €1.67bn including debt.

The deal will increase FTSE 100-packaging manufacturer DS Smith’s size and is thought to be a bid to capitalize on the global boom in online sales. The deal included €16.8 per Europac share and values the company at €1.9bn on an enterprise value basis, according to Proactive Investors.co.uk

Financed through €1.1 billion rights issue and €740 million of new debt it is DS Smith’s first acquisition in Western Europe for almost six months.

According to Europac’s board, the acquisition is subject to financial duties and to continued assessment of relevant documentation.

Miles Roberts, Group Chief Executive of DS Smith, said, “The acquisition of Europac is a very exciting development for DS Smith, strengthening our position as a leading global supplier of sustainable packaging solutions. We have a long-standing relationship with Europac, which is a company we have long admired, given the quality of their assets, employees and customers.”