By Business & Finance Smurfit Kappa Group (SKG) has announced the acquisition of Grupo CYBSA which has non-integrated packaging operations (corrugated, folding carton and flexibles) in El Salvador and Costa Rica.
SKG is paying approximately $104m (€90m) for the business which had net assets of $40m at end-2014.
These are the group’s first operations in these countries and provide opportunities for growth through integration (adding containerboard/paper capacity) or through further acquisitions.
The deal, which is likely to be funded from internal cash reserves, will be accretive from the first year, reflecting the low acquisition multiple and attractive funding costs.
