Smurfit Kappa to pay $340m for US firm

Dublin-headquartered paper and packaging business Smurfit Kappa Group has agreed to acquire US containerboard manufacturer Orange County Container Group for $340m (€260m) in a deal aimed at boosting its presence in Mexico.

The deal — which is subject to regulatory approval and is expected to be completed during the fourth quarter of this year — should be earnings per share accretive upon completion and is expected to deliver at least $14m in synergies by the end of the second year of ownership. The deal is being funded from SKG’s cash resources.

“The acquisition delivers immediate earnings growth for SKG and significantly strengthens our existing position in the Mexican market,” said SKG chief executive Gary McGann.