SKG Smurfit Kappa Group Plc

 
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MDP Acquisitions plc

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Smurfit Kappa to enter higher growth Central American market through CYBSA acquisition

SKG.I SKG.L

Dublin, London | 09 March 2015: Smurfit Kappa Group ('SKG' or the 'Group') one of the world's largest integrated manufacturers of paper-based packaging products with operations in Europe and the Americas, is pleased to announce that it has agreed to acquire Grupo CYBSA ('CYBSA'), a non-integrated corrugated, folding cartons and flexible packaging manufacturer with operations in El Salvador and Costa Rica (the 'Transaction').

CYBSA is a private company with approximately 1,000 employees and net assets at 31 December 2014 of approximately US$40 million. It operates five packaging plants located in the higher growth markets of El Salvador and Costa Rica, from which it services a growing customer base in its domestic markets, along with Guatemala and Honduras.

Following the completion of over EUR160 million of acquisitions in the Americas in 2014, the acquisition of CYBSA will further enhance SKG's presence in the region, providing us with an unrivalled packaging footprint across 12 countries from the southern United States to Argentina. Within these markets, the Group is uniquely placed as the largest pan-regional supplier to apply its increasingly global perspective and differentiated offering to create and drive value for our customers.

The transaction, which will be immediately earnings accretive, is expected to close in the second quarter of 2015 subject to customary closing conditions and regulatory approval. Based on 2014 EBITDA of almost US$13 million and expected synergies of approximately US$6 million, of which over US$4 million will be delivered in year one, the Group will complete the acquisition at a post synergies multiple of 5.5 times EBITDA.

Gary McGann, Smurfit Kappa Group CEO, said: "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."

About Smurfit Kappa

Smurfit Kappa is one of the leading providers of paper-based packaging solutions in the world, with around 42,000 employees in approximately 350 production sites across 32 countries and with revenue of EUR8.1 billion in 2014. We are located in 21 countries in Europe, and 11 in the Americas. We are the only large-scale pan-regional player in Latin America.

With our pro-active 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-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. Our products, which are 100% renewable and produced sustainably, improve the environmental footprint of our customers.

 
Contacts 
Seamus Murphy            FTI Consulting 
Smurfit Kappa 
T: +353 1 202 71 80      T: +353 1 663 36 80 
E: ir@smurfitkappa.com   E: smurfitkappa@fticonsulting.com 
 
 
 

Forward Looking Statements

Some statements in this announcement are forward-looking. They represent expectations for SKG's business, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. SKG believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond SKG's control, actual results or performance, may differ materially from those expressed or implied by such forward-looking statements.

The financial information above is subject to change as our financial statements are reviewed by us and our auditors.

 
 
 
This information is provided by Business Wire 
 
 

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