Yesterday (December 1) the merger was completed with Smurfit's former shareholders taking 58.3% of the new company and Kappa's owning 41.7%. The deal is estimated to be around 300 million Euros (203 million).
” Jefferson Smurfit and Kappa will form a focused industry leader with compelling strategic, operational and geographic fit “
– Gary McCann, Jefferson Smurfit Group
Two companies are major recyclers of waste cardboard, in the UK. Smurfit brings to the table facilities including a plant in Snodland, Kent – while Kappa's Birmingham mill is one of the most modern containerboard plants in the UK.
Commenting on the deal, Gary McGann, Jefferson Smurfit Group's CEO, said: “We are pleased to announce the achievement of these milestones. Jefferson Smurfit and Kappa will form a focused industry leader with compelling strategic, operational and geographic fit. Our objective now is the effective integration of the two businesses.”
And Frits Beurskens, Kappa Packaging CEO, added: “The merger of Kappa Packaging and Jefferson Smurfit Group creates an exciting platform which combines two highly complementary businesses. Smurfit Kappa Group will have a well invested asset base to provide creative packaging solutions to current and prospective customers.”
The new company will now have a worldwide capacity of 6.1 million tonnes of containerboard and 5.1 million tonnes of corrugated.
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