Packaging manufacturer Smurfit Kappa Group (SKG) has acquired Fabrika Hartije d.o.o. Beograd (FHB) paper mill and Avala Ada d.o.o Beograd corrugated plant in Belgrade from Kappa Star Group.
The acquisition will expand SKG’s geographic footprint and provide for full containerboard integration in the Group’s packaging operations in Southeast Europe.
According to SKG, Avala Ada and FHB have leading market positions in Serbia and solid positions in other countries.
The containerboard mill holds one upgraded recycled containerboard machine with the current capacity of 120,000 tonnes and a potential to drive synergies and increase capacity with a limited investment of capital, said SKG.
Avala Ada’s corrugated plant has a current production of approximately 110 million square metres and creates both corrugated and laminated packaging, with its customer base composed on local and national customers. This provides a strong platform for growth with SKG’s Pan European and Multi National customers in the region.
SKG chief executive Tony Smurfit, commented: “We are pleased to announce our agreement to acquire FHB and Avala Ada, which will be a cornerstone to the expansion of our business in Southeast Europe. We look forward to welcoming their experienced teams into the Smurfit Kappa Group, and we are confident their expertise and the high quality of the companies’ asset bases will provide us with an excellent platform to grow in the region and further strengthen our European offering for our new and existing customers.”
The group acquired the mills for a consideration of €133 million (£116 million).