Smurfit Kappa acquires Italian recycled containerboard business

Smurfit Kappa Group (SKG), a paper-based packaging solutions provider headquartered in Dublin, has announced it will acquire Verzuolo, a recycled containerboard business in northern Italy for a cash consideration of 360 million euros (about $424.5 million). Owned by the Burgo Group, the Verzuolo mill is located near the port of Savona in northwest Italy. The mill’s PM9 machine was constructed in 2002 and converted into a 600,000-metric-ton-capacity recycled containerboard machine in 2019.

According to a news release from Smurfit Kappa, Verzuolo complements its existing business and is strategically positioned to serve the southern European region. The company says the cash consideration will be funded from the group’s existing resources. It expects the acquisition to complete in the fourth quarter of the year, subject to customary closing conditions including regulatory approval.

“Consistent with our multistakeholder approach, we believe that this acquisition represents another positive step for the group, our customers and all shareholders,” says Tony Smurfit, CEO of Smurfit Kappa Group. “SKG has a proven ability to identify, acquire, integrate and optimize complementary businesses. This acquisition also reflects the inherent agility of our approach to deploying capital rapidly and effectively.”

Smurfit Kappa Europe CEO Saverio Mayer adds, “SK Europe is delighted to announce our agreement to acquire Verzuolo. It is a business that we had identified and have admired for some time. The acquisition demonstrates our commitment to this important market for the group and provides additional security of supply for our customer base. It strengthens the group’s unique integrated operating model and is highly complementary to the significant investments we are making in our corrugated facilities.”