The acquisition will allow Smurfit Kappa to offer benefits such as technical and production optimisation and increased containerboard integration within the group

Italy mill

Smurfit Kappa has agreed to acquire Verzuolo containerboard business. (Credit: Smurfit Kappa)

Paper-based packaging firm Smurfit Kappa Group (SKG) has agreed to acquire Northern Italy-based containerboard business Verzuolo for €360m in cash.

Currently owned by the Burgo Group, the Verzuolo recycled containerboard mill is located near the port of Savona in the northwest of the country.

The mill consists of a PM9 machine, which was constructed in 2002. It was transformed into a 600,000-tonne capacity recycled containerboard machine in 2019.

Verzuolo, which is said to be highly complementary to SKG’s existing business, is strategically placed to serve both the Southern European region and other markets.

Smurfit Kappa Europe CEO Saverio Mayer said: “SK Europe is delighted to announce our agreement to acquire Verzuolo. It is a business that we had identified and have admired for some time.

“The acquisition demonstrates our commitment to this important market for the Group and provides additional security of supply for our customer base.”

The acquisition of Verzuolo will allow SKG to offer significant synergistic benefits such as technical and production optimisation and increased containerboard integration within the group.

Verzuolo is believed to provide additional security of supply for SKG’s customer base, in addition to strengthening the company’s integrated operating model.

In addition, the Verzuolo mill is optimally situated for SKG’s Southern European corrugated facilities.

SKG CEO Tony Smurfit said: “We welcome the highly experienced Verzuolo team to the Smurfit Kappa Group as we continue to strengthen the world’s leading paper-based packaging group.

“Consistent with our multi-stakeholder approach, we believe that this acquisition represents another positive step for the Group, our customers and all shareholders.”

Subject to customary closing conditions including regulatory approval, the deal is expected to be completed in the fourth quarter of this year.

Earlier this month, Smurfit Kappa completed the acquisition of Mexico-based folding carton company Cartonbox.