Ireland-based Smurfit Kappa Group PLC (SKG) has announced plans to acquire Reparenco, a privately owned paper and recycling company based in the Netherlands, for about €460 million ($540 million).
Assets acquired include a two-machine paper mill in the Netherlands with a capacity of 675,000 metric tons per year and a 750,000-metric-ton-per-year paper recycling operation that operates under the name Reparco.
The paper mill produces 450,000 metric tons of recycled paperboard and 270,000 metric tons of graphic paper. SKG indicates the graphic paper line can be converted to containerboard.
SKG further states that Reparenco presents it with a “strong strategic fit with its existing European businesses, which 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 [that] began on Feb. 1 this year,” says SKG CEO Tony Smurfit. “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.”