The acquisition represents a transaction multiple, pre-synergies, of 6.4x Reparenco’s 2018 expected full year EBITDA of €72million. Reparenco’s strong strategic fit with SKG’s existing European businesses is expected to deliver synergies of in excess of €30 million. Including synergies, the acquisition multiple is less than 4.5x EBITDA.

Reparenco represents a central element of our Medium Term Plan – to increase our European recycled containerboard capacity. It is ideally situated in our core European operating region where we continue to see strong demand driven by growth in e-commerce and increased substitution of plastic with paper-based packaging.

The mill is also very well placed on the cost curve and specialises in producing basis weights from 80 to 120 grams which caters for the market’s growing demand for lighter-weight materials, said Laurent Sellier, Smurfit Kappa COO, Paper Europe.

This acquisition adds 405,000 tonnes of recycled containerboard capacity to the system of Smurfit Kappa. The 750,000 tonne recycling operation increases the security and quality of raw material supply of the group.

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