Smurfit Kappa Group has completed its acquisition of Netherlands-based paper and recycling business Reparenco for €460 million.
SKG said it expected to see savings of more than €30 million with the integration of the recycling firm into the SKG businesses. It is also part of the company's strategy of increasing its capacity in Europe for recycled containerboard.
"We are very pleased to complete the acquisition of Reparenco and to welcome their 315 employees to Smurfit Kappa," said Smurfit Kappa chief executive of Europe, Saverio Mayer. "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 operates a two-machine paper mill with a capacity of 675,000 tonnes together with a 750,000 tonne recovered-fibre operation. The deal was initially announced in May, and last month SKG said it would borrow €600 million from investors through a bond issue to cover the cost of the acquisition.
SKG said the firm was “ideally situated” in its core European operating region with strong demand fuelled by growth in ecommerce and the increased substitution of plastic with paper-based packaging.
The new facility will add 405,000 tonnes of recycled containerboard capacity to SKG’s system. The group said the 750,000 tonne recycling operation increased security and quality of raw material supply, and quality of products.
