Irish paper and packaging manufacturer Smurfit Kappa has increased its presence ion the high growth Central American market through the acquisition of CYBSA.
A non-integrated corrugated, folding cartons and flexible packaging manufacturer with operations in El Salvador and Costa Rica, Grupo CYBSA is a private company with approximately 1,000 employees and net assets of about $40 million (€37m).
Smurfit Kappa is understood to have paid about $100m for CBYBSA, and it said that the acquisition will be “immediately earnings accretive”. It is expected to close in the second quarter of 2015. Smurfit Kappa already has a small presence in central America, in Costa Rica.
Gary McGann, group CEO with Smurfit Kappa Group, said: " 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."
CYBSA operates five packaging plants located 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.
Smurfit Kappa said that the acquisition will “ further enhance” its presence in the region, giving it an “ unrivalled packaging footprint across 12 countries from the southern United States to Argentina”.
