News within the industry of pulp and paper, Nov, 19 2018
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Smurfit Kappa to acquire one of the largest integrated packaging business in Serbia

Photo: Smurfit Kappa
Photo: Smurfit Kappa
Published by
Simon Matthis - 01 Nov 2018

Smurfit Kappa Group plc, one of the world's largest manufacturers of paper-based packaging products, with operations in Europe and the Americas, announces that it has agreed to acquire Fabrika Hartije d.o.o. Beograd (‘FHB’) paper mill and Avala Ada d.o.o. Beograd (‘Avala Ada’) corrugated plant, in Belgrade, for a consideration of €133 million (the ‘Transaction’) from Kappa Star Group.

The acquisition will expand SKG’s geographic footprint and provide for full containerboard integration in the Group's packaging operations in Southeast Europe. FHB and Avala Ada are well invested businesses, with a leading market position in Serbia and solid positions in adjacent countries.

The containerboard mill holds one recently upgraded recycled containerboard machine with a current capacity of 120,000 tonnes and significant potential to drive synergies and further increase capacity with a limited investment of capital. The corrugated plant has a current production of approximately 110 million square metres and produces both corrugated and laminated packaging. Its customer base is predominantly composed of local and national customers, providing a strong platform for organic growth with SKG's Pan European and Multi National customers in the region.

The transaction reflects a pre-synergy multiple of 7.6 times the expected full year 2018 EBITDA and the consideration will be funded from the Group's existing resources. It is expected that the Transaction will complete by year end subject to customary completion conditions.

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