Smurfit Kappa has announced the acquisition of Reparenco, a privately owned paper and recycling business in the Netherlands, for a cash consideration of approximately €460 million.
Reparenco, which employs 315 people, operates a two machine paper mill in the Netherlands with a capacity of 675,000 tonnes together with a 750,000 tonne recovered fibre operation.
Strong Cultural Fit
The group posted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of €41m, while it had gross assets of €189m in the 12 months to April 2018
Smurfit believes that Reparenco’s strong strategic fit with its European structure will deliver significant synergies in the near-term across a number of areas.
Smurfit Kappa Group CEO, Tony Smurfit, said, “We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on February 1st 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.”
Smurfit added that the transaction will be completed within four to six weeks, subject to approval from the regulatory body.
Smurfit has fought off multiple bids from American-based International Paper over the last few months, with the US packaging company saying it would not pursue a hostile takeover after the Irish Takeover Panel gave it until June 6 to make a third binding offer.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.