Paper and packaging company Smurfit Kappa has acquired two Brazilian paper-based packaging companies including Industria de Embalagens Santana (INPA) and Paema Embalagens, for nearly €186m.
INPA and Paema combinedly have three recycled containerboard mills with a total capacity of 210,000 tons and four corrugated facilities serving the Northeast of Brazil.
As of 30 September 2015, INPA and Paema had €30m and €6m in net assets respectively.
The combined business employs over 1,700 people, the company said.
Smurfit Kappa CEO Tony Smurfit said: "We are pleased to announce the acquisition of INPA and Paema, which will extend our reach into a strategically important market and build on our geographic diversity and strength. We look forward to welcoming the experienced teams into the Smurfit Kappa Group.
"We are confident that their expertise and the high quality of their asset base will provide us with a strong entry point into the Brazilian market and, as the leading pan-regional operator in Latin America, further strengthen our service offering to our existing international customers."
Smurfit Kappa expects to generate synergies of nearly €6m by the end of 2017, primarily through operational improvements and supply chain optimization as the businesses are integrated.
It will apply its operating systems and design and innovation capability to enhance INPA and Paema's businesses.
Smurfit Kappa currently has 43,000 employees in approximately 350 production sites across 33 countries.
The company, which produces corrugated packaging, containerboard, solid board and solid board packaging, generated around €8.1bn in revenues in 2014.
