Smurfit Kappa has moved a step closer to securing its independence after agreeing to acquire Dutch paper firm Reparenco for €460mn.
The Irish manufacturer, one of the largest of its kind in the world with 2017 revenues of over €8.5bn, has been the subject of takeover interest from its US rival International Paper, rejecting an offer in March.
Through the merger with paper and recycling specialists Reparenco, it is reaffirming its plan to forge its own path, creating synergies in the near-term in a number of areas, including increased integration of containerboard and the recycling operations into the Group.
Reparenco operates a two machine paper mill in the Netherlands with a capacity of 675,000 tonnes together with a 750,000 tonne recovered fibre operation, employing 315 people.
"We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on February 1st this year," said 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.
"We welcome all the Reparenco employees to Smurfit Kappa. We believe there is a strong cultural fit between our businesses and that, together, we will generate value in the short, medium and long term for all our stakeholders."
According to Smurfit Kappa's statement, the deal is expected to complete within four to six weeks subject to customary conditions and adjustments and regulatory approval.