Smurfit Kappa Group has completed the acquisition of Reparenco, a paper and recycling business in the Netherlands, for Euro 460 million, as the company said in the press release received by Lesprom Network.
The acquisition represents a transaction multiple, pre-synergies, of 6.4x Reparenco’s 2018 expected full year EBITDA of Euro 72million. Reparenco’s strong strategic fit with SKG’s existing European businesses is expected to deliver synergies of in excess of Euro 30 million. Including synergies, the acquisition multiple is less than 4.5x EBITDA.
Smurfit Kappa, CEO, Europe, Saverio Mayer, said: “We are very pleased to complete the acquisition of Reparenco and to welcome their 315 employees to Smurfit Kappa. There is a strong cultural fit between our businesses and we are excited about the potential for Reparenco within the Smurfit Kappa integrated system.
“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 specialises in producing basis weights from 80 to 120 grams which caters for the market’s growing demand for lighter-weight materials.”
Reparenco operates a two machine paper mill in the Netherlands with a capacity of 675,000 tonnes together with a 750,000 tonne recovered fibre operation. The mill comprises two machines with capacity of 405,000 tonnes of recycled containerboard and 270,000 tonnes of graphic paper (with the potential for conversion to containerboard).