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