Smurfit-Stone completes acquisition of Smurfit-MBI
April 1, 2003 By Pulp & Paper Canada
Smurfit-Stone Container Corporation announced that the company has completed the previously announced transactions…
Smurfit-Stone Container Corporation announced that the company has completed the previously announced transactions with Jefferson Smurfit Group (JS Group), involving the exchange of SSCC’s European operations for JS Group’s 50% ownership in Smurfit-MBI and a payment from JS Group of approximately $190 million US.
As a result, Smurfit-Stone now owns 100% of Smurfit-MBI, a Canadian packaging business, and ends its manufacturing presence in Europe. The $190 million US cash proceeds will be used to reduce debt.
Based in Mississauga, ON, Smurfit-MBI employs about 2,500 and operates 15 corrugated container plants in Canada. For 2002, Smurfit-MBI posted sales of approximately $430 million US.
The European operations include three paperboard mills, 20 packaging plants and five recycling facilities. In 2002, the European operations produced about 500,000 short tons of containerboard and boxboard. Sales were approximately $630 million US. The operations employ about 3,200.
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