Smurfit Kappa to acquire Bates Container
Smurfit Kappa has agreed to acquire Bates Container LLC, a non-integrated corrugated packaging manufacturer in the South West of the United States.
Tony Smurfit, Smurfit Kappa Group COO stated; “This acquisition fits perfectly with our integrated model, complementing in a significant way the successful integration of SKOC which was acquired in December 2012 and providing us with substantial scope for further synergies in both businesses. These synergies will be primarily delivered through additional integration of the containerboard needs of Bates into SKOC’s 350 000 tonnes recycled containerboard mill, with additional savings expected through a range of operational efficiency measures.
This transaction will involve an initial consideration of US$ 150 million with a further estimated deferred payment of US$ 7,5 million. The acquisition is expected to complete in the fourth quarter of 2014 subject to customary regulatory approval.