Smurfit Kappa buys Dutch group Reparenco for €460m
Packaging giant Smurfit Kappa has announced the acquisition of Reparenco, a Dutch paper and recycling company for €460m.
In the 12 months to April 2018 the group generated earnings before interest, taxation, depreciation, and amortisation (EBITDA) of €41m, while it had gross assets of €189m.
The acquisition represents a transaction multiple, pre-synergies, of 6.4 times the expected full year 2018 EBITDA for Reparenco of €72m.
The cash consideration will be funded from the group's existing resources.
Reparenco, which employs 315 people, 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.
In a statement this morning Smurfit said that the company’s strategic fit with Smurfit’s European business is expected to deliver significant synergies in the near-term in a number of areas, including increased integration of containerboard and the recycling operations into the group.
"We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on February 1 this year. The acquisition of Reparenco is complementary with our existing business; strengthens our integrated business model; and accelerates a central element of our medium term plan," Tony Smurfit, chief executive of Smurfit, said.
Smurfit has recently been the subject of a takeover bid by US giant International Paper.
Earlier this month International Paper ruled out a hostile takeover move on Smurfit.