24th May 2018 08:59
LONDON (Alliance News) - Smurfit Kappa Group PLC said Thursday it has acquired a privately owned paper and recycling business in the Netherlands.
The EUR460 million cash consideration offer for Reparenco will be funded from Smurfit Kappa's exiting resources, it said. The Irish paper and packaging giant expects the transaction to be completed in the next four to six weeks.
The purchase will grant Smurfit Kappa access to Reparenco's two machine paper mills in the Netherlands. The mills have a 675,000 tonnes together - one with a capacity for 405,000 tonnes of recycled containerboard and the other has capacity for 270,000 tonnes of graphic paper - with a 750,000 tonne recovered fibre operation.
Reparenco employs 315 people with gross assets of EUR189 million and generated earnings before interest, tax, depreciation and amortisation of EUR41 million in the 12 months to April.
Chief Executive Officer Tony Smurfit said: "We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on February 1 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."
Shares in Smurfit Kappa were up 1.7% Thursday morning to 3,074.00 pence each.
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