Smurfit Kappa to expand its Southeast European footprint with the acquisition of the largest integrated packaging business in Serbia

Smurfit Kappa Group plc , one of the world’s largest manufacturers of paper-based packaging products, with operations in Europe and the Americas, is pleased to announce that it has agreed to acquire Fabrika Hartije d.o.o. Beograd (‘FHB’) paper mill and Avala Ada d.o.o. Beograd (‘Avala Ada’) corrugated plant, in Belgrade, for a consideration of €133 million (the ‘Transaction’) from Kappa Star Group.

The acquisition will expand SKG’s geographic footprint and provide for full containerboard integration in the Group’s packaging operations in Southeast Europe. FHB and Avala Ada are well invested businesses, with a leading market position in Serbia and solid positions in adjacent countries.

The containerboard mill holds one recently upgraded recycled containerboard machine with a current capacity of 120,000 tonnes and significant potential to drive synergies and further increase capacity with a limited investment of capital. The corrugated plant has a current production of approximately 110 million square metres and produces both corrugated and laminated packaging. Its customer base is predominantly composed of local and national customers, providing a strong platform for organic growth with SKG’s Pan European and Multi National customers in the region.

The transaction reflects a pre-synergy multiple of 7.6 times the expected full year 2018 EBITDA and the consideration will be funded from the Group’s existing resources. It is expected that the Transaction will complete by year end subject to customary completion conditions.

Transaction Highlights

• Acquisition of packaging business provides opportunity to further expand SKG’s Pan European footprint while entering a new, well consolidated and growing market.
• Acquisition of high quality containerboard mill with a current capacity of 120,000 tonnes securing paper integration in the region with significant production expansion potential.
• Completed at pre-synergy multiple of 7.6 times the expected full year 2018 EBITDA.

Smurfit Kappa Group CEO, Tony Smurfit, commented: “We are pleased to announce our agreement to acquire FHB and Avala Ada, which will be a cornerstone to the expansion of our business in Southeast Europe. We look forward to welcoming their experienced teams into the Smurfit Kappa Group, and we are confident their expertise and the high quality of the companies’ asset bases will provide us with an excellent platform to grow in the region and further strengthen our European offering for our new and existing customers.

Company: Smurfit Kappa


Smurfit Kappa is a FTSE 100 company and one of the leading providers of paper-based packaging in the world, with operations in 21 European countries and 12 countries in the Americas. Our experience and expertise create new opportunities for our customers and we are constantly updating our pack design and innovations to provide the optimum choice and packaging supplies.

Almost all of the raw materials are sourced from our own paper mills, so consistency is always a key attribute of our products. Because those products are 100% renewable and produced sustainably, we help our customers reduce their environmental footprint.

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