REG-Smurfit Kappa Group PLC Acquisition

Smurfit KappaAnnouncement

28/07/2021 07:00

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Acquisition

 

28th July 2021

Smurfit Kappa agrees to acquire state of the art 600,000 tonne recycled
containerboard mill


 * Strengthens SKG’s integrated operating model


 * Provides additional security of supply for customers


 * Supports the Group’s sustainability ambitions


 * Complements significant corrugated growth opportunities including sustainable
packaging

Smurfit Kappa Group plc (“SKG” or the “Group”) agrees to acquire
Verzuolo, a containerboard business in Northern Italy, for a cash
consideration of €360 million. The Verzuolo mill owned by the Burgo Group,
is situated close to the port of Savona in the northwest of Italy. The PM9
machine was newly constructed in 2002 and converted into a 600,000 tonne
capacity recycled containerboard machine in 2019.

Verzuolo is highly complementary to SKG’s existing business and is
strategically positioned to serve both the Southern European region and other
markets ensuring we continue to provide the best service to our corrugated
customers. The acquisition will deliver significant synergistic benefits
including technical and production optimisation, and increased containerboard
integration within the Group.

The cash consideration will be funded from the Group’s existing resources.
It is expected that the acquisition will complete during the fourth quarter,
subject to customary closing conditions including regulatory approval.

Transaction Highlights


 * SKG has agreed to acquire a state of the art, strategically located recycled
containerboard facility

 * World-class recycled containerboard mill with 600,000 tonne capacity

 * Provides additional security of supply for SKG’s customer base

 * Immediately earnings accretive

 * Strengthens Smurfit Kappa’s integrated operating model

 * Optimally located for SKG’s Southern European corrugated facilities

Smurfit Kappa Group CEO, Tony Smurfit, commented: ‘We welcome the highly
experienced Verzuolo team to the Smurfit Kappa Group as we continue to
strengthen the world’s leading paper-based packaging group. Consistent with
our multi-stakeholder approach, we believe that this acquisition represents
another positive step for the Group, our customers and all shareholders. SKG
has a proven ability to identify, acquire, integrate and optimise
complementary businesses. This acquisition also reflects the inherent agility
of our approach to deploying capital rapidly and effectively.’

Smurfit Kappa Europe CEO, Saverio Mayer, concluded: ‘SK Europe is delighted
to announce our agreement to acquire Verzuolo. It is a business that we had
identified and have admired for some time. The acquisition demonstrates our
commitment to this important market for the Group and provides additional
security of supply for our customer base. It strengthens the Group’s unique
integrated operating model and is highly complementary to the significant
investments we are making in our corrugated facilities.’

ENDS

Media contact:

Nicki Labram

Smurfit Kappa

T: +353 87 164 4672

E: nicki.labram@smurfitkappa.com (mailto:nicki.labram@smurfitkappa.com)

About Smurfit Kappa

Smurfit Kappa, a FTSE 100 company, is one of the leading providers of
paper-based packaging solutions in the world, with approximately 46,000
employees in over 350 production sites across 36 countries and with revenue of
€8.5 billion in 2020. We are located in 23 countries in Europe, and 13 in
the Americas. We are the only large-scale pan-regional player in Latin
America. Our products, which are 100% renewable and produced sustainably,
improve the environmental footprint of our customers.

With our proactive team, we relentlessly use our extensive experience and
expertise, supported by our scale, to open up opportunities for our customers.
We collaborate with forward-thinking customers by sharing superior product
knowledge, market understanding and insights in packaging trends to ensure
business success in their markets. We have an unrivalled portfolio of
paper-based packaging solutions, which is constantly updated with our
market-leading innovations. This is enhanced through the benefits of our
integration, with optimal paper design, logistics, timeliness of service, and
our packaging plants sourcing most of their raw materials from our own paper
mills.

We have a proud tradition supporting social, environmental and community
initiatives in the countries where we operate. Through these projects we
support the UN Sustainable Development Goals, focusing on where we believe we
can have the greatest impact.

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Smurfit Kappa Group PLC


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