Smurfit Kappa to acquire Parenco
24 May 2018
Irish paper and packaging group Smurfit Kappa (SKG) has announced an agreement on the acquisition of the Dutch paper and recycling company Reparenco. The acquisition, which is valued at €460m, will reportedly accelerate the group's strategic objectives and strengthen its paper integration in Europe.
Reparenco operates a paper mill in Renkum that is doing business as Parenco with a capacity to produce 405,000 tpy of recycled containerboard and 270,000 tpy of SC paper and improved newsprint on two machines. Reparenco's recycling branch Reparco is a 750,000 tpy recovered fibre business.
SKG on its part is eyed for takeover by its US rival International Paper (IP). The group's board of director had rejected IP's hostile bid proposals on two occasions in March and IP has now time until 6 June to decide whether or not it will make an offer for Smurfit Kappa under Rule 2.5 of the Irish Takeover Rules.