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Smurfit Kappa is pleased to announce that it has agreed to acquire Reparenco

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Accelerates SKG’s strategic objectives under its Medium Term Plan

Smurfit Kappa Group plc, one of the world’s largest integrated manufacturers of paper-based packaging products with operations in Europe and the Americas, is pleased to announce that it has agreed to acquire Reparenco, a privately owned paper and recycling business in the Netherlands, for a cash consideration of approximately €460 million following a competitive process.

Reparenco 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. Reparenco 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 6.4x 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.
Smurfit Kappa Group will host a conference call, for analysts and institutional investors today, 24 May, at 9.00 BST (04.00 ET)