07.06.18
Smurfit Kappa Group said it completed its €460 million acquisition of Reparenco, a Netherlands-based paper and recycling business
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The acquisition represents a transaction multiple, pre-synergies, of 6.4x Reparenco’s 2018 expected full year EBITDA of €72million.
Reparenco’s strategic fit with SKG’s existing European businesses is expected to deliver synergies of in excess of €30 million. Including synergies, the acquisition multiple is less than 4.5x EBITDA.
“There is a strong cultural fit between our businesses and we are excited about the potential for Reparenco within the Smurfit Kappa integrated system,” said Saverio Mayer, Smurfit Kappa, CEO, Europe. “Reparenco represents early delivery of a central element of our Medium-Term Plan – to increase our European recycled containerboard capacity. It is ideally situated in our core European operating region where we continue to see strong demand driven by growth in e-commerce and increased substitution of plastic with paper-based packaging. The mill is also very well placed on the cost curve and specializes in producing basis weights from 80 to 120 grams which caters for the market’s growing demand for lighter-weight materials.”
Added Laurent Sellier, Smurfit Kappa COO, Paper Europe: “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. While the machine offers the potential for conversion to containerboard over the medium-term, our intention is to continue to produce graphic paper for our customers for the foreseeable future. The 750,000 ton 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.”
.
The acquisition represents a transaction multiple, pre-synergies, of 6.4x Reparenco’s 2018 expected full year EBITDA of €72million.
Reparenco’s strategic fit with SKG’s existing European businesses is expected to deliver synergies of in excess of €30 million. Including synergies, the acquisition multiple is less than 4.5x EBITDA.
“There is a strong cultural fit between our businesses and we are excited about the potential for Reparenco within the Smurfit Kappa integrated system,” said Saverio Mayer, Smurfit Kappa, CEO, Europe. “Reparenco represents early delivery of a central element of our Medium-Term Plan – to increase our European recycled containerboard capacity. It is ideally situated in our core European operating region where we continue to see strong demand driven by growth in e-commerce and increased substitution of plastic with paper-based packaging. The mill is also very well placed on the cost curve and specializes in producing basis weights from 80 to 120 grams which caters for the market’s growing demand for lighter-weight materials.”
Added Laurent Sellier, Smurfit Kappa COO, Paper Europe: “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. While the machine offers the potential for conversion to containerboard over the medium-term, our intention is to continue to produce graphic paper for our customers for the foreseeable future. The 750,000 ton 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.”