Smurfit Kappa Declared Acquisition of Recycled Containerboard Mill in Italy

SEATTLE (Scrap Monster): Smurfit Kappa Group plc. announced its decision to acquire a recycled containerboard mill in Northern Italy. Verzuolo- the 600,000 tonne containerboard business will be purchased for a cash consideration of €360 million. The mill, located close to the port of Savona , is currently owned by the Burgo Group.

The company press release noted that the Verzuolo mill is highly complementary to its existing business. The strategic position of the mill ensures best service to its corrugated customers in the Southern European markets as well as other markets. The acquisition is expected to deliver significant synergies and is likely to lead to increased containerboard integration within the Group.

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Smurfit Kappa aims to fund the cash for the transaction from the Group’s existing resources. The acquisition is expected to be completed in Q4 this year, subject to customary closing conditions.

Commenting on the acquisition, Tony Smurfit, Group CEO, Smurfit Kappa said that the addition of the highly experienced Verzuolo team to the company will further strengthen its operations in the region. It represents another positive step for the Group, its customers and all shareholders, he added.