Packaging producer Smurfit Kappa Group (SKG) has announced that it has acquired Netherlands-based paper and recycling business Reparenco for €460 million (£406 million).
The acquisition represents a transaction multiple, pre-synergies, of 6.4 times Reparenco’s 2018 expected annual earnings of €72million.
SKG chief executive Saverio Mayer said: “We are very pleased to complete the acquisition of Reparenco and to welcome their 315 employees to Smurfit Kappa. There is a strong cultural fit between our businesses and we are excited about the potential for Reparenco within the Smurfit Kappa integrated system.”
He added that Reparenco represents a central part of its plan to increase its European recycled containerboard capacity, and is ideally situated in SKG’s operating region where it continues to see strong demand. This is driven by growth in increased substitution of plastic with paper-based packaging.
SKG chief operations officer Laurent Sellier said: “The acquisition of Reparenco will strengthen our integrated business model and adds 405,000 tonnes of recycled containerboard capacity to our system. We are also pleased to have acquired a high quality graphic paper machine very well positioned in its market.
“The 750,000-tonne recycling operation increases our security and quality of raw material supply and also ensures we can provide our customers with greater certainty about the quality and performance of our products.”