Receive our newsletter – data, insights and analysis delivered to you
  1. News
November 1, 2018

Smurfit Kappa to buy integrated packaging business in Serbia for $151m

Smurfit Kappa Group has reached an agreement to purchase an integrated packaging business comprising the Fabrika Hartije Beograd (FHB) paper mill and Avala Ada Beograd corrugated plant in Belgrade, Serbia, from Kappa Star Group.

Smurfit Kappa Group has reached an agreement to purchase an integrated packaging business comprising the Fabrika Hartije Beograd (FHB) paper mill and Avala Ada Beograd corrugated plant in Belgrade, Serbia, from Kappa Star Group.

The deal is valued at €133m ($151.12).

Besides expanding Smurfit Kappa’s European geographic presence, the acquisition will provide full containerboard integration in the company’s packaging operations in Southeast Europe.

The acquired facilities will allow Smurfit Kappa to gain a significant market position in Serbia and adjacent countries.

The FHB containerboard mill is equipped with a recycled containerboard machine, which was recently upgraded and has a capacity of 120,000t, with potential for further expansion.

Smurfit Kappa Group CEO Tony Smurfit said: “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.

Content from our partners
GMP: The food sector’s golden rules (and how they will evolve)
Food fraud in the supply chain (and how to fix it)
Cutting-edge innovation in fish packaging

“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.”

“Their expertise and the high quality of the companies’ asset bases will provide us with an excellent platform to grow.”

The corrugated plant produces both corrugated and laminated packaging with an existing production capacity of about 110 million square metres.

According to the company, the acquisition of the integrated packaging business represents a pre-synergy multiple of 7.6 times the expected 2018 full year EBITDA.

Smurfit Kappa expects to arrange funding for the transaction from its existing resources.

Subject to certain customary closing conditions, the closure of the transaction is anticipated to take place by the end of the year.

The company has also reported an EBITDA growth of 27% year-on-year to €1.13bn and revenue growth of more than 7% year-on-year.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The packaging industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU