November 2 (SeeNews) - Irish company Smurfit Kappa said it has agreed to acquire Serbian paper mill Fabrika Hartije and corrugated plant Avala Ada for a total of 133 million euro ($152.2 million).
The acquisition will expand the geographic footprint of Smurfit Kappa and provide for full containerboard integration in the group's packaging operations in Southeastern Europe (SEE), the Irish company said in a statement earlier this week.
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FHB and Avala Ada are well-invested businesses, with a leading market position in Serbia and solid positions in adjacent countries and the transaction is expected to be completed by the end of 2018, Smurfit Kappa said.
"We are pleased to announce our agreement to acquire FHB and Avala Ada, which will be a cornerstone to the expansion of our business in SEE. We look forward to welcoming their experienced teams into the Smurfit Kappa Group, and we are confident their expertise and the high quality of the companies' asset bases will provide us with an excellent platform to grow in the region and further strengthen our European offering for our new and existing customers."
The transaction reflects a pre-synergy multiple of 7.6 times the expected full year 2018 EBITDA and the consideration will be funded from the Smurfit Kappa's existing resources, the statement added.
($ = 0.8737 euro)