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03 Dec 2012

Orange County Container Group completion

Smurfit Kappa Group is pleased to announce that it has completed the acquisition of Orange County Container Group (the “Business” or “OCCG”) for a total cash consideration of US$340 million (c. €260 million) (the “Transaction”) on 30th November 2012.

This is subject to customary post Completion price adjustments. The US$340 million cash consideration is being funded from, and represents a highly effective use of, the Group's existing cash resources.

OCCG is a corrugated and containerboard manufacturer with operations predominantly in Northern Mexico but also in the Southern United States (“US”) and will form part of the Group’s Latin America segment.

OCCG employs 2,800 people (2,000 of whom are employed in Mexico), and is expected to generate at least US$53 million of EBITDA for the full year (“FY”) 2012.

Gary McGann, Smurfit Kappa Group CEO, said:

"We are very pleased to announce the completion of the acquisition of Orange County Container Group. This acquisition is fully consistent with our declared growth strategy, complements our existing Mexican business and increases our exposure to a demographically attractive and rapidly growing region. We remain comfortably within our stated leverage guidance of below three times and the acquisition delivers value through earnings accretion (year 1)

Our focus now is on the effective integration of our businesses in the region which gives us an exciting platform to continue to provide creative packaging solutions to both current and prospective customers.”