Smurfit Kappa Group recently entered into the Brazilian packaging market through the purchase of two Brazil-based integrated packaging businesses.
The paper-based packaging solutions provider acquired Industria de Embalagens Santana (INPA) and Paema Embalagens whose combined operations consist of three recycled container board mills and four corrugated facilities. The two businesses have more than 1,700 employees.
“We are pleased to announce the acquisition of INPA and Paema, which will extend our reach into a strategically important market and build on our geographic diversity and strength," Smurfit Kappa Group CEO Tony Smurfit said. "We are confident that their expertise and the high quality of their asset base will provide us with a strong entry point into the Brazilian market and, as the leading pan-regional operator in Latin America, further strengthen our service offering to our existing international customers."
Smurfit Kappa Group acquired the two companies for 186 million euros. Smurfit Kappa plans to make operational and supply chain improvements to the companies, and predicts that it will result in synergies of around 6 million euros by the year 2017.
Smurfit Kappa has approximately 360 production sites worldwide, with locations in 21 countries in Europe and 13 in the Americas.