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Packaging And Design

Bates Container Ticks Right Boxes For Smurfit Kappa

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Bates Container Ticks Right Boxes For Smurfit Kappa

Smurfit Kappa, the Irish-based packaging manufacturer, has announced that it will acquire US company Bates Container for around $157 million.

Bates Container makes corrugated packaging and is based in the south-west of the United States. It requires around 135,000 tonnes of containerboard, and a substantial amount of this will be supplied by Smurfit Kappa's containerboard mill in Texas.

CEO of Smurfit Kappa, Gary McGann, said that the combination of the two companies will "increase our market presence and provide us with higher-quality earnings in this region".

Smurfit Kappa COO Tony Smurfit said that additional savings were expected as a result of a range of operational efficiency measures and that the "enlarged packaging footprint in the US will further enhance SKG's capacity to provide innovative, insight-led and value-enhancing packaging solutions to both current and prospective customers".

The deal, which will be funded from Smurfit Kappa's cash reserves, is expected to be completed before the end of the year, subject to regulatory approval.

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© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience-store and FMCG news. Article written by Nicole Gernon.

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