Lordos United Public Ltd announced on Friday that it has signed an agreement to acquire a 51 per cent controlling stake in P&S Carton Industries Ltd for €8.16 million in cash, marking its entry into Cyprus’ corrugated packaging sector.

The company said the acquisition agreement was signed with the existing shareholders of P&S Carton Industries Ltd, with the transaction subject to regulatory approval from the Commission for the Protection of Competition.

The announcement was issued in accordance with the applicable provisions of the Cyprus Stock Exchange Listing and Disclosure Rules.

Lordos United, a Cyprus-registered public company listed on the Cyprus Stock Exchange, said the acquisition aligns with its long-term strategy of sustainable growth, operational excellence and shareholder value creation.

The company currently operates in the plastics manufacturing and packaging industry, while the acquisition will expand its activities into the corrugated cardboard packaging market.

P&S Carton Industries Ltd is a private limited company incorporated in Cyprus on December 5, 1991, under the Companies Law, Cap. 113, with registration number 46409.

The company manufactures and sells corrugated cardboard boxes and packaging solutions, serving customers across a broad range of industries in Cyprus, including the beverage, agriculture, pharmaceutical and consumer goods sectors.

According to the announcement, P&S Carton Industries is the only domestic manufacturer of corrugated cardboard boxes in Cyprus, supplying approximately 60 per cent of domestic packaging demand, with the remaining demand met through imports.

The company added that P&S Carton has developed over the past three decades into the country’s leading packaging supplier.

P&S Carton’s issued share capital amounts to €119,700, divided into 70,000 shares with a nominal value of €1.71 each.

Under the share purchase agreement, Lordos United will acquire 35,700 shares, representing 51 per cent of the company’s share capital, at a price of €228.57 per share.

Following completion of the transaction, the existing vendors will retain the remaining 49 per cent minority stake in P&S Carton.

The board said it considers the acquisition strategically and financially attractive following an internal assessment and advice from an external expert.

It explained that P&S Carton’s dominant market position was one of the principal reasons behind the acquisition, pointing out that the company operates in a structurally protected market without any significant domestic competition.

The board also said the transaction would diversify Lordos United’s product portfolio beyond plastics manufacturing by adding corrugated cardboard packaging, thereby reducing concentration risk.

It added that the cardboard packaging sector is expected to benefit from long-term structural growth, driven by increasing European Union regulatory pressure against single-use plastics.

The company further stated that P&S Carton’s customer base complements Lordos United’s existing commercial relationships, creating opportunities for cross-selling and the delivery of integrated packaging solutions across the food, agriculture, pharmaceutical and consumer goods sectors.

In addition, the board pointed to planned investment in new machinery during 2027 and 2028, which is expected to significantly increase production capacity and improve the target company’s cost competitiveness.

Once completed, the acquisition will see P&S Carton consolidated as a 51 per cent-owned subsidiary in Lordos United’s consolidated financial statements under IFRS 10 Consolidated Financial Statements.

The remaining 49 per cent minority interest will be recognised separately within equity.

Based on P&S Carton’s 2025 financial results, the company expects approximately €11,399,764 in annual turnover to be consolidated into the group’s results from the acquisition date, increasing overall revenue.

Lordos United also estimated that its 51 per cent share of P&S Carton’s EBITDA would amount to approximately €869,248, based on the target company’s 2025 financial performance.

Under IFRS 3 Business Combinations, the company expects to recognise approximately €3,711,398 in goodwill, using the partial goodwill method, under which minority interests are measured according to their proportional share of net assets.

The company said the final purchase price allocation will be completed within 12 months of the acquisition date.

It added that P&S Carton’s net assets, estimated at approximately €8,744,749 based on pro forma accounts prepared in April 2026, will also be consolidated into the group’s balance sheet from the acquisition date.

Completion of the acquisition remains conditional upon approval by the Commission for the Protection of Competition.

Lordos United said the transaction has been conducted on a purely commercial arm’s length basis and will be accounted for in accordance with International Financial Reporting Standards.

The company also confirmed that the acquisition does not affect the interests of its company secretary or any specified person, as defined under Article 137(3) of the Securities and Cyprus Stock Exchange Law 14(I)/1993, as amended.

Looking ahead, Lordos United said it expects the transaction to have a positive impact on profitability, reflecting its participation in the target company’s share capital and the anticipated distribution of profits.

The company added that the investment also marks its entry into a new business segment, creating opportunities for further expansion into related activities.

The board concluded that the acquisition is fair and reasonable for both the company and its shareholders, represents fair value and creates new growth prospects for the group.

It also accepted responsibility for the information contained in the announcement, stating that, to the best of its knowledge and belief, all reasonable care had been taken to ensure the information was consistent with the facts and omitted nothing likely to affect its significance.

The announcement was approved by the company’s board of directors.

PwC acted as the independent financial adviser on the transaction.

Finally, Lordos United said it will issue a further announcement once the acquisition has been completed.