Smurfit Kappa GrpPLC Statement re Completion of Acquisition
03 December 2012 - 6:00PM
UK Regulatory
TIDMSKG
Completion of Acquisition of Orange County Container Group
SKG.I SKG.L
Dublin, London | 3 December, 2012: Smurfit Kappa Group plc
('SKG' or the 'Group') a world leader in the integrated manufacture
of paper-based packaging products with operations in Europe and
Latin America, is pleased to announce that it has completed the
acquisition of Orange County Container Group (the "Business" or
"OCCG") for a total cash consideration of US$340 million (c. EUR260
million) (the "Transaction") on 30th November 2012. This is subject
to customary post Completion price adjustments. The US$340 million
cash consideration is being funded from, and represents a highly
effective use of, the Group's existing cash resources.
OCCG is a corrugated and containerboard manufacturer with
operations predominantly in Northern Mexico but also in the
Southern United States ("US") and will form part of the Group's
Latin America segment. OCCG employs 2,800 people (2,000 of whom are
employed in Mexico), and is expected to generate at least US$53
million of EBITDA for the full year ("FY") 2012.
Gary McGann, Smurfit Kappa Group CEO, said:
"We are very pleased to announce the completion of the
acquisition of Orange County Container Group. This acquisition is
fully consistent with our declared growth strategy, complements our
existing Mexican business and increases our exposure to a
demographically attractive and rapidly growing region. We remain
comfortably within our stated leverage guidance of below three
times and the acquisition delivers value through earnings accretion
(year 1).
Our focus now is on the effective integration of our businesses
in the region which gives us an exciting platform to continue to
provide creative packaging solutions to both current and
prospective customers."
ENDS
About Smurfit Kappa Group
Smurfit Kappa Group is a world leader in paper-based packaging
with operations in Europe and Latin America. Smurfit Kappa Group
operates in 21 countries in Europe and is the European leader in
containerboard, solidboard, corrugated, high-end consumer
packaging, and solidboard packaging and has a key position in
several other packaging and paper market segments, including
graphicboard and sack paper. Smurfit Kappa Group also has a growing
base in Eastern Europe, a bag-in-box facility in Canada and
operates in 9 countries in Latin America where it is the only pan
regional operator.
Forward Looking Statements
Some statements in this announcement are forward-looking. They
represent expectations for the Group's business, and involve risks
and uncertainties. These forward-looking statements are based on
current expectations and projections about future events. The Group
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 the Group's control, actual
results or performance may differ materially from those expressed
or implied by such forward-looking statements.
Contacts
Seamus Murphy FTI Consulting
Smurfit Kappa Group
Tel: +353 1 202 71 80 Tel: +353 1 663 36 86
E-mail: ir@smurfitkappa.com E-mail: smurfitkappa@fticonsulting.com
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