May 24, 2018 – Smurfit Kappa Group is set to acquire Reparenco, a Netherlands-based, privately-owned paper and recycling business for about €460 million.
Smurfit Kappa Group (SKG) is one of the world’s largest integrated manufacturers of paper-based packaging products with operations in Europe and the Americas.
Reparenco operates a two-machine paper mill iwith a capacity of 675,000 tonnes together with a 750,000-tonne recovered fibre operation. It employs 315 people with gross assets of €189 million and generated EBITDA of €41 million in the 12 months to April 2018, during which time the business continued to ramp up production.
The acquisition represents a transaction multiple, pre-synergies, of 6.4 times the expected full year 2018 EBITDA for Reparenco of €72 million.
Reparenco’s strong strategic fit with SKG’s existing European businesses is expected to deliver significant synergies in the near-term in a number of areas, including increased integration of containerboard and the recycling operations into the Group.
The cash consideration will be funded from the Group’s existing resources. It is expected that the Transaction will complete within four to six weeks subject to customary completion conditions and adjustments and regulatory approval.
In September, SKG acquired the Russian corrugated packaging company Soyuz. More recently, in March, SKG rejected an unsolicited acquisition proposal from International Paper Company, headquartered in Memphis, Tenn.
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