Smurfit Kappa Group has ‘flexibility’ to spend up to €1bn on acquisition deals

Dublin-based paper and packaging group Smurfit Kappa has the ability to spend up to €1bn on acquisitions this year without harming its balance sheet or breaching its lending covenants, management has said.

Chief executive Tony Smurfit yesterday said the group is effectively on the acquisition trail again after using last year to bed in €186m worth of deals carried out in 2015. He said the pipeline of possible deals is increasing, but the €1bn figure represents the group’s current spending capacity rather than its definite spending target.

He was speaking after the group’s agm — which saw directors Gary McGann and Thomas Brodin retire from the board — and the publication of its first quarter results.