Smurfit Kappa has acquired Netherlands-based paper and recycling business Reparenco for approximately €460 million.
Reparenco operates a machine paper mill in the Netherlands with a capacity of 675,000 tonnes, together with a 750,000 tonne recovered fibre operation. It employs 315 people and generated EBITDA of €41 million in the 12 months to April 2018.
Smurfit Kappa said the firm is a “strong strategic fit” with its existing European businesses and is expected to deliver “significant synergies” in a number of areas, including increased integration of containerboard and recycling operations.
The move follows on from Smurfit Kappa’s purchase of Russian corrugated packaging company Soyuz last year, as it aims to continue expanding its European operations.
Smurfit Kappa CEO Tony Smurfit said: “We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on 1 February this year. The acquisition of Reparenco is complementary with our existing business, strengthens our integrated business model and accelerates a central element of our medium-term plan.
“We welcome all the Reparenco employees to Smurfit Kappa. We believe there is a strong cultural fit between our businesses and that, together, we will generate value in the short, medium and long term for all our stakeholders.”
It is expected that the transaction will complete within four to six weeks, subject to customary completion conditions.
Smurfit Kappa has around 46,000 employees at approximately 370 production sites in 35 countries. It had revenue of €8.6 billion in 2017.
© FoodBev Media Ltd 2024