SKG24 Sep 2012 16:09
SKG to acquire Orange County Container Group for US$340m (c. €260m)
SKG.I SKG.L
Dublin, London | 24th September, 2012: Smurfit Kappa Group plc (‘SKG’ or the ‘Group’) one of the world’s largest integrated manufacturers of paper-based packaging products with operations in Europe and Latin America, announces that it has agreed to acquire Orange County Container Group (the “Business” or “OCCG”) for a total cash consideration of US$340 million (c. €260 million) (the “Transaction”).
OCCG is a private corrugated and containerboard manufacturer with operations in Northern Mexico and the Southern United States (“US”). OCCG employs 2,800 people (2,000 of whom are employed in Mexico), and is expected to generate US$53 million of EBITDA for the full year (“FY”) 2012. OCCG’s strong strategic fit with SKG’s existing businesses is expected to deliver at least US$14 million of synergies by the end of year 2.
The US$340 million cash consideration will be funded from the Group's existing cash resources. It is anticipated that the Transaction will complete in the fourth quarter of 2012 subject to customary completion conditions and regulatory approval, and is expected to be EPS accretive on completion.
Smurfit Kappa Group will host a conference call, for analysts and institutional investors today, 24th September, at 15.00 BST (10.00 ET). Dial in details to access this conference call are set out at the end of this release.