Smurfit Kappa to Acquire U.K.-Based Inspirepac
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Smurfit Kappa, Ireland, this week announced that it will acquire Inspirepac, a non-integrated corrugated, high quality print and display business in the U.K. from the Logson Group. Inspirepac is a private company with 279 employees, and operates two packaging plants and a two erecting plants in the North of England.
The acquisition, according to the company, will further enhance Smurfit Kappa's leading position in the U.K. market, and build on its existing capabilities in the high quality print and point of sale market segments. The transaction will be completed for a consideration of £43.5 million and will be immediately earnings accretive. It is expected to close in the second quarter of 2015 subject to customary closing conditions. Based on 2014 EBITDA of £6 million and expected year one synergies of approximately £1.2 million, the Group will complete the acquisition at a post synergies multiple of 6.0 times EBITDA.
Tony Smurfit, COO and president of Smurfit Kappa Group, said that "we are delighted with the announcement of this acquisition and look forward to welcoming the Inspirepac team into Smurfit Kappa U.K. They have built excellent businesses in many product and customer sectors, which will add to our existing strengths, and support our continued drive to 'Open the Future' within the U.K. packaging market."
