Monday, September 24 14:48:25
Dublin-based packaging materials giant, Smurfit Kappa Group (SKG) today said it is to buy Orange County Container Group in the US for a total cash consideration of USD340 million (around E260 million).
OCCG is a private corrugated and containerboard manufacturer with operations in Northern Mexico and the Southern United States. OCCG employs 2,800 people (2,000 of whom are employed in Mexico), and is expected to generate USD53 million of EBITDA for the full year 2012.
The Irish group said that OCCG's "strong strategic fit" with SKG's existing businesses is expected to deliver at least USD14 million of synergies by the end of year 2.
The US$340 million cash consideration will be funded from the Group's existing cash resources, SKG said.
It said that it is anticipated that the transaction will complete in the fourth quarter of 2012 subject to customary completion conditions and regulatory approval, and is expected to be EPS accretive on completion.