The acquisition is expected to boost Smurfit Kappa’s presence in the country, enhance the company’s production capabilities and enable the firm to continue to create new opportunities and form new partnerships with customers
Paper-based packaging supplier Smurfit Kappa has signed an agreement to acquire Saquarema Rio de Janeiro-based PaperBox packaging plant.
The acquisition is anticipated to be finalised by the end of October, subject to regulatory body clearance.
Brazil is said to be the largest corrugated cardboard market in Latin America, with 7.4 billion m² produced each year, and the Southeast region, where PaperBox is located, equates to 46% of the volume.
Smurfit Kappa Americas CEO Laurent Sellier said: “We are very proud to expand our footprint in Brazil to meet the growing demand for innovative and sustainable packaging.
“This acquisition will broaden and strengthen our presence in the country, improve our production capabilities and enable us to continue to create new opportunities and form new partnerships with customers.”
At present, Smurfit Kappa operates in three additional states in Brazil: Minas Gerais, Rio Grande do Sul, and Ceará, thus this purchase further widens its business base there.
Smurfit Kappa Brazil CEO Manuel Alcalá said: “Smurfit Kappa believes in Brazil and in the opportunities to deliver growth by continuing to add value to our customers business.
“PaperBox has a distinguished history in the region and a special commitment to all stakeholders. This is a legacy that Smurfit Kappa will build upon.”
Currently, the company has operations in 23 European countries and 13 countries in the Americas.