Smurfit to buy UK firm for €60m
Irish packaging group Smurfit Kappa has agreed to pay £43.5m (€60m) for UK-based Inspirepac, extending its presence in the market.
Smufit Kappa is buying the non-integrated corrugated, high quality print and display business from the Logson Group.
Inspirepac has 279 employees and operates two packaging plants and two additional facilities in the north of England. It generated earnings before interest, tax, depreciation and amortisation (EBITDA) of £6m last year.
Smurfit Kappa said it expects to generate £1.2m in synergies in the first year of the acquisition.
The Dublin-listed firm said the deal is expected to close in the second quarter of this year.
Smurfit Kappa also said the deal will further enhance its market-leading position in the UK market, and build on its existing capabilities in the high quality print market segment
Smurfit Kappa, which is headed by chief executive Gary McGann, is holding a capital markets day in the Netherlands for investors today.
There has been speculation that the Irish company could be approached in a more than €8bn buyout attempt by US-based International Paper.
It has been reported that the US firm has hired Deutsche Bank to develop a possible bid for the Irish firm.
Smurfit Kappa hasn't commented on the rumour. Its shares have soared over the past year, and the company currently has a market capitalisation of €6.7bn.