DS Smith unveils €1.6bn packaging deal and right issue SCA sold the division because it wanted to focus on its hygiene and forestry businesses, Mr Roberts said. DS Smith is the leading supplier of recycled packaging in the UK and France with clients including Proctor & Gamble, Nestle & Reckitt Benckiser. It said the acquisition would take it into new markets across continental Europe where its key consumer goods customers already operate, giving it exposure mainly to northern European economies. Mr Roberts said the main cost savings from the deal would come from procurement and harmonisation and there were no current plans to close factories. Despite the generally tough economic environment, DS Smith said the market for recycled packaging was growing. Standard Life, which holds 14.6pc of the stock, has backed the acquisition. Investors will vote on the deal at a meeting on February 3 and the company hopes to complete the deal by the second quarter. As part of the deal, DS Smith will take on around £69m of SCA Packaging pension liabilities.