Smurfit Kappa to acquire Central American packaging firm

Ireland-based Smurfit Kappa Group (SKG) has agreed to acquire Grupo CYBSA, a non-integrated corrugated, folding cartons and flexible packaging manufacturer with operations in El Salvador and Costa Rica.

Privately-owned CYBSA operates five packaging plants in El Salvador and Costa Rica, from which it services a customer base in its domestic markets, along with Guatemala and Honduras.

SKG says that following the completion of more than €160 million (US$169 million) of acquisitions in the Americas in 2014, the acquisition of CYBSA will enhance its presence in Central America and provide it with a packaging footprint from the southern United States to Argentina.

The transaction is expected to close in the second quarter of 2015 subject to customary closing conditions and regulatory approval.

Gary McGann, SKG’s CEO, says, “We are very pleased to announce our agreement to acquire CYBSA and look forward to welcoming the excellent team from CYBSA into the Smurfit Kappa Group. The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG’s capacity to provide innovative, insight-led, differentiated and value enhancing packaging solutions to both current and prospective customers throughout the Americas.”