US-based paper and packaging company International Paper is considering to acquire Smurfit Kappa, in a bid that could value the Irish packaging producer at approximately €8bn.
This is in line of a series of acquisitions of European companies by US rivals as the dollar’s recent gains make these companies cheaper.
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International Paper is considering an offer at approximately €36 a share if it did make a proposal, Sky News reported citing a source.
Smurfit Kappa provides paper-based packaging solutions worldwide, which includes containerboards, corrugated containers and other paper-based packaging products, such as solid boards, graphic boards and bag-in-box.
With 42,000 employees, Smurfit Kappa operates 350 production sites across 32 countries and generated approximately €8.1bn in revenues in 2014.
International Paper has appointed Deutsche Bank as the adviser on the possible bid for Smurfit.
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By GlobalDataAustralian packaging company Amcor has also expressed interest in the acquisition of Smurfit Kappa.
In March, Smurfit Kappa agreed to acquire a non-integrated corrugated, folding cartons and flexible packaging manufacturer Grupo CYBSA for around $100m, which is expected to expand its presence in Central America, reports Irish Times.
CYBSA currently operates five packaging plants located in El Salvador and Costa Rica, from where it services a growing customer base in its domestic markets, along with Guatemala and Honduras.
Smurfit Kappa Group CEO Gary McGann previously said: "The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG’s capacity to provide innovative, insight-led, differentiated and value enhancing packaging solutions to both current and prospective customers throughout the Americas."
Image: Smurfit Kappa operates 350 production sites across 32 countries. Photo: courtesy of Smurfit Kappa Group.
