Smurfit Kappa has agreed to acquire two Serbian packaging production businesses from Kappa Star Group for approximately €133 million, expanding its manufacturing operations in Southeast Europe.
Fabrika Hartije Beograd (‘FHB’) operates a paper mill and Avala Ada Beograd (‘Avala Ada’) runs a corrugated packaging plant, both located in Belgrade, and Smurfit Kappa claims that both businesses hold a leading market position in Serbia and solid positions in neighbouring countries.
FHB’s paper mill includes one recently-upgraded recycled containerboard machine with a current capacity of 120,000 tonnes, and the plant could be upgraded further in the future to provide additional production capacity.
Meanwhile, Avala Ada’s corrugated plant has a current production space of approximately 110 million square metres, and is capable of producing both corrugated and laminated packaging.
These acquisitions mark Smurfit Kappa’s entry into Serbia, and the company says that the deals offer the opportunity to further expand its European footprint while entering a new, well consolidated and growing market.
Smurfit Kappa Group CEO, Tony Smurfit said: “We are pleased to announce our agreement to acquire FHB and Avala Ada, which will be a cornerstone to the expansion of our business in Southeast Europe.
“We look forward to welcoming their experienced teams into the Smurfit Kappa Group, and we are confident their expertise and the high quality of the companies’ asset bases will provide us with an excellent platform to grow in the region and further strengthen our European offering for our new and existing customers.”
Smurfit Kappa estimates that the transaction should close by the end of the year, subject to regulatory approval.
© FoodBev Media Ltd 2019