Paper manufacturer Smurfit Kappa has announced the sale of its minority shareholding in Duropack AG Group, the group’s Austrian associate, to Constantia Packaging for €55m.
The proceeds from the sale of the shareholding will be used to reduce net debt.
Duropack AG has containerboard and corrugated businesses in Austria, Germany, Czech Republic, Slovakia, Slovenia, Hungary, Bulgaria, Serbia and Croatia.
CEO of the Smurfit Kappa Group Gary McGann said: "SKG and Constantia have had a very positive relationship going back to the early 1990s.
"For many years the investment in Duropack was the Group’s only involvement in Eastern Europe. As a result of the merger of Jefferson Smurfit Group and Kappa Packaging AB in 2005, the Group has wholly owned businesses in Poland, Czech Republic, Slovakia, Russia, Lithuania and Latvia, thereby competing directly with Duropack in many of these countries.
"As a result, the Boards of both SKG and Constantia agreed that it is in the best interest of both sets of shareholders, and of Duropack, that SKG disposes of its shareholding to Constantia."