Smurfit Kappa Group, Ireland, will acquire Grupo CYBSA, a non-integrated corrugated, folding cartons and flexible packaging manufacturer with operations in El Salvador and Costa Rica. CYBSA is a private company with approximately 1,000 employees and net assets at December 31, 2014, of approximately $40 million. It operates five packaging plants in the higher growth markets of El Salvador and Costa Rica, from which it services a growing customer base in its domestic markets, along with Guatemala and Honduras.

Following the completion of more than EUR 160 million of acquisitions in the Americas in 2014, the acquisition of CYBSA will further enhance SKG’s presence in the region, providing it with an packaging footprint across 12 countries from the southern U.S. to Argentina. 

The transaction, which will be immediately earnings accretive, is expected to close in the second quarter of 2015 subject to customary closing conditions and regulatory approval. Based on 2014 EBITDA of almost $13 million and expected synergies of approximately $6 million, of which more than $4 million will be delivered in year one, the Group will complete the acquisition at a post synergies multiple of 5.5 times EBITDA.

Gary McGann, Smurfit Kappa Group CEO, said that "we are very pleased to announce our agreement to acquire CYBSA and look forward to welcoming the excellent team from CYBSA into the Smurfit Kappa Group. The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG’s capacity to provide innovative, insight-led, differentiated, and value enhancing packaging solutions to both current and prospective customers throughout the Americas."