Smurfit Kappa has agreed to acquire a non-integrated corrugated, folding cartons and flexible packaging manufacturer Grupo CYBSA.
Irish Times reported that the acquisition, which will expand Smurfit Kappa’s presence in Central America, is valued at approximately $100m.
CYBSA currently operates five packaging plants located in El Salvador and Costa Rica, from where it services a growing customer base in its domestic markets, along with Guatemala and Honduras.
As of 31 December 2014, CYBSA has close to 1,000 employees and net assets worth $40m.
Smurfit Kappa Group CEO Gary McGann said: "The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG’s capacity to provide innovative, insight-led, differentiated and value enhancing packaging solutions to both current and prospective customers throughout the Americas."
Subject to customary closing conditions and regulatory approval, the acquisition is expected to be completed in the second quarter of 2015.
With this investment, the company will have packaging footprint across 12 countries from the southern US to Argentina.
Smurfit Kappa has so far completed acquisitions worth more than €160m in the Americas.
Image: Smurfit Kappa offers containerboards, corrugated containers, and other paper-based packaging products. Photo: courtesy of Smurfit Kappa Group.