Smurfit Kappa Group plc ('SKG') has agreed to acquire Fabrika Hartije d.o.o. Beograd (‘FHB’) paper mill and Avala Ada d.o.o. Beograd corrugated plant, in Belgrade, Serbia, for a consideration of Euro 133 million from Kappa Star Group.
The acquisition will expand SKG’s geographic footprint and provide for full containerboard integration in the Group's packaging operations in Southeast Europe. FHB and Avala Ada are well invested businesses, with a leading market position in Serbia and solid positions in adjacent countries.
The containerboard mill holds one recently upgraded recycled containerboard machine with a current capacity of 120,000 tonnes and significant potential to drive synergies and further increase capacity with a limited investment of capital. The corrugated plant has a current production of approximately 110 million square metres and produces both corrugated and laminated packaging.
The transaction reflects a pre-synergy multiple of 7.6 times the expected full year 2018 EBITDA and the consideration will be funded from the Group's existing resources. It is expected that the transaction will complete by year end subject to customary completion conditions.
Smurfit Kappa Group plc is one of the world's largest manufacturers of paper-based packaging products, with operations in Europe and the Americas.
