Last checked at 28 Jul 2021 07:00
28th July 2021
Smurfit Kappa agrees to acquire state of the art 600,000 tonne recycled containerboard mill
Strengthens SKG’s integrated operating model Provides additional security of supply for customers Supports the Group’s sustainability ambitionsComplements significant corrugated growth opportunities including sustainable packagingSmurfit Kappa Group plc (“SKG” or the “Group”) agrees to acquire Verzuolo, a containerboard business in Northern Italy, for a cash consideration of €360 million. The Verzuolo mill owned by the Burgo Group, is situated close to the port of Savona in the northwest of Italy. The PM9 machine was newly constructed in 2002 and converted into a 600,000 tonne capacity recycled containerboard machine in 2019.
Verzuolo is highly complementary to SKG’s existing business and is strategically positioned to serve both the Southern European region and other markets ensuring we continue to provide the best service to our corrugated customers. The acquisition will deliver significant synergistic benefits including technical and production optimisation, and increased containerboard integration within the Group.
The cash consideration will be funded from the Group’s existing resources. It is expected that the acquisition will complete during the fourth quarter, subject to customary closing conditions including regulatory approval.
Transaction Highlights
SKG has agreed to acquire a state of the art, strategically located recycled containerboard facilityWorld-class recycled containerboard mill with 600,000 tonne capacityProvides additional security of supply for SKG’s customer baseImmediately earnings accretiveStrengthens Smurfit Kappa’s integrated operating modelOptimally located for SKG’s Southern European corrugated facilitiesSmurfit Kappa Group CEO, Tony Smurfit, commented: ‘We welcome the highly experienced Verzuolo team to the Smurfit Kappa Group as we continue to strengthen the world’s leading paper-based packaging group. Consistent with our multi-stakeholder approach, we believe that this acquisition represents another positive step for the Group, our customers and all shareholders. SKG has a proven ability to identify, acquire, integrate and optimise complementary businesses. This acquisition also reflects the inherent agility of our approach to deploying capital rapidly and effectively.’
Smurfit Kappa Europe CEO, Saverio Mayer, concluded: ‘SK Europe is delighted to announce our agreement to acquire Verzuolo. It is a business that we had identified and have admired for some time. The acquisition demonstrates our commitment to this important market for the Group and provides additional security of supply for our customer base. It strengthens the Group’s unique integrated operating model and is highly complementary to the significant investments we are making in our corrugated facilities.’
ENDS
Media contact:Nicki LabramSmurfit KappaT: +353 87 164 4672E: nicki.labram@smurfitkappa.com
About Smurfit Kappa
Smurfit Kappa, a FTSE 100 company, is one of the leading providers of paper-based packaging solutions in the world, with approximately 46,000 employees in over 350 production sites across 36 countries and with revenue of €8.5 billion in 2020. We are located in 23 countries in Europe, and 13 in the Americas. We are the only large-scale pan-regional player in Latin America. Our products, which are 100% renewable and produced sustainably, improve the environmental footprint of our customers.
With our proactive team, we relentlessly use our extensive experience and expertise, supported by our scale, to open up opportunities for our customers. We collaborate with forward-thinking customers by sharing superior product knowledge, market understanding and insights in packaging trends to ensure business success in their markets. We have an unrivalled portfolio of paper-based packaging solutions, which is constantly updated with our market-leading innovations. This is enhanced through the benefits of our integration, with optimal paper design, logistics, timeliness of service, and our packaging plants sourcing most of their raw materials from our own paper mills.
We have a proud tradition supporting social, environmental and community initiatives in the countries where we operate. Through these projects we support the UN Sustainable Development Goals, focusing on where we believe we can have the greatest impact.
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