DS Smith, the packaging and paper company, has announced it has entered into an agreement to buy EcoPack and EcoPaper, businesses owned by a Romanian rival, for €208m (£185.6m).
Smith said the Romanian business was a leading family-owned concern and will "significantly enhance our capacity to serve customers in this high growth region as well as supporting our wider substantial Eastern European presence".
The statement continued: "It is very complementary to our customer and asset base providing an excellent opportunity for further growth as well as significant cost synergies."
The acquisition consideration and repayment of debt, together totalling €208 million, will be satisfied from existing cash and debt facilities, and from €35 million of DS Smith shares to be issued to the vendor.
DS Smith expects the acquisition to be earnings enhancing immediately.