Smurfit Westrock has reached an agreement to buy Empresas CMPC’s containerboard and corrugated operations in Chile for $420m.

The purchase price equates to a post-synergy multiple of below six times adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation].

The assets are positioned near Chile’s main fishing and agricultural areas.

Smurfit Westrock Latam CEO Alvaro Henao said: “In our previously announced Medium-Term Plan, we identified Latam as a region of growth and development both through internal investment and acquisition.

“I am particularly happy to reach this agreement to acquire world- class assets in Chile with a formidable team that we look forward to welcoming into the Smurfit Westrock organisation. This firmly establishes Smurfit Westrock as the leading player in Chile and further strengthens our regional footprint.”

The deal includes a paper mill in Santiago with annual production of 250,000 tonnes.

Smurfit Westrock mill will support its regional paper operations by supplying recycled paper to facilities in Argentina, Peru, and Ecuador.

Kraftliner from Brazil and North America will also be available for the acquired corrugated operations in Chile.

The company plans to use its own liquid resources to finance the acquisition.

The deal is due for completion in the first half of 2027, subject to regulatory approvals and other customary closing requirements.

Smurfit Westrock president and CEO Tony Smurfit said: "Opportunities to acquire a truly unique business like this one are rare. CMPC has nurtured and grown this business over many decades and brings tremendous expertise into the Smurfit Westrock organisation.”