PRZOOM - /newswire/ - Dublin, Ireland, 2018/10/31 - Smurfit Kappa Group plc is pleased to announce that it has agreed to acquire Fabrika Hartije d.o.o. Beograd (‘FHB’) paper mill and Avala Ada d.o.o. Beograd (‘Avala Ada’) corrugated plant, in Belgrade - SmurfitKappa.com. LSE (SKG); ISE (SKG)

Smurfit Kappa Group plc ('SKG' or the 'Group'), one of the world's largest manufacturers of paper-based packaging products, with operations in Europe and the Americas, is pleased to announce that it has agreed to acquire Fabrika Hartije d.o.o. Beograd (‘FHB’) paper mill and Avala Ada d.o.o. Beograd (‘Avala Ada’) corrugated plant, in Belgrade, for a consideration of €133 million (the ‘Transaction’) 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 (fabrikahartije.rs) and Avala Ada (avalaada.rs) 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. Its customer base is predominantly composed of local and national customers, providing a strong platform for organic growth with SKG's Pan European and Multi National customers in the region.

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.

Transaction Highlights

• Acquisition of packaging business provides opportunity to further expand SKG's Pan European footprint while entering a new, well consolidated and growing market.
• Acquisition of high quality containerboard mill with a current capacity of 120,000 tonnes securing paper integration in the region with significant production expansion potential.
• Completed at pre-synergy multiple of 7.6 times the expected full year 2018 EBITDA.

Smurfit Kappa Group CEO, Tony Smurfit, commented: “We are pleased to announce our agreement to acquire FHB and Avala Ada, which will be a cornerstone to the expansion of our business in Southeast Europe. We look forward to welcoming their experienced teams into the Smurfit Kappa Group (smurfitkappa.com), and we are confident their expertise and the high quality of the companies' asset bases will provide us with an excellent platform to grow in the region and further strengthen our European offering for our new and existing customers.

Agency / Source: Smurfit Kappa Group plc

Availability: All Regions (Including Int'l)

Traffic Booster: [/] Quick PRZOOM - Press & Newswire Visibility Checker

Distribution / Indexing: [+]  / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]