Smurfit Kappa Concludes €460M Acquisition of Paper & Recycling Business

SEATTLE (Scrap Monster): Paper-based packaging major Smurfit Kappa has announced that it has completed the acquisition of the Netherlands-based paper and recycling business for Euro 460 million. The acquisition of Reparenco’s assets was funded from the company’s existing resources. The move is expected to deliver synergies in excess of Euro 30 million to Smurfit Kappa’s European business.

Saverio Mayer, CEO, Smurfit Kappa-Europe noted that the strong cultural fit between the two businesses offers unlimited potentials for Reaparenco within the Smurfit Kappa integrated system. Further he expressed immense pleasure in completing the acquisition and welcomed all the 315 Reparenco employees to the Smurfit Kappa Group.

Meantime, Laurent Sellier, Smurfit Kappa COO, Paper Europe stated that the acquisition will further strengthen the company’s integrated business model, by way of addition of 405,000 tonnes of recycled containerboard capacity. The acquisition also involves a high quality graphic paper machine, which also offers the potential to be converted to containerboard over a medium term. The company will continue to produce graphic paper to its customers in the near future, Sellier added.

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The two parties had reached an agreement towards acquisition in end-May this year. The negotiations had begun in February itself, before the U.S.-based International Paper’s (IP) open offer to acquire Smurfit Kappa assets.

Incidentally, Reparenco has gross assets totaling Euro 189 million. It 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. The mill comprises two machines with capacity of 405,000 tonnes of recycled containerboard and 270,000 tonnes of graphic paper.