Reparenco operates a two-machine paper mill in the Netherlands with a capacity of 675,000 tons together with a 750,000 ton recovered fiber operation. Reparenco employs 315 people with gross assets of €189 million and generated EBITDA of €41 million in the 12 months to April 2018, during which time the business continued to ramp up production.
The acquisition represents a transaction multiple, pre-synergies, of 6.4x the expected full year 2018 EBITDA for Reparenco of €72 million.
Reparenco’s strategic fit with SKG’s existing European businesses is expected to deliver significant synergies in the near-term in a number of areas, including increased integration of containerboard and the recycling operations into the Group.
The cash consideration will be funded from the Group’s existing resources. It is expected that the Transaction will complete within four to six weeks subject to customary completion conditions and adjustments and regulatory approval.
“We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on February 1st this year,” Smurfit Kappa Group CEO Tony Smurfit said. “The acquisition of Reparenco is complementary with our existing business, strengthens our integrated business model and accelerates a central element of our medium term plan.