Packaging firm Smurfit Kappa has expanded its presence in Latin America with the acquisition of paper-based packaging company Cartones del Pacifico in Peru.
The acquisition is a significant milestone for the packaging company as it expands its footprint in the Americas from 12 to 13 countries, and strengthens its position as one of the largest regional suppliers in Latin America.
Grupo Quimpac has acquired Smurfit Kappa’s flexible packaging business in El Salvador as part of the transaction, the company added.
Commenting on the acquisition, Smurfit Kappa Group CEO, Tony Smurfit, said, “The acquisition of Cartones del Pacifico further expands our strategic reach and underscores our growing regional capability in Latin America. With a population of over 30 million, we are delighted to expand our footprint into Peru to help drive future growth.”
The acquisition will open opportunities for Smurfit Kappa to enhance its business through its best-in-class operating systems, procurement arrangements, and design and innovation capability to cater to customers’ needs, mainly in the rapidly growing agricultural and industrial sectors.
The company’s enlarged global footprint will improve its packaging offering to multinationals operating throughout the Latin American region.
'Strong Cultural Fit'
CEO of The Americas at Smurfit Kappa, Juan G Castaneda, said, “We are very pleased to complete the acquisition of Cartones del Pacifico, and to welcome their 368 employees to the Smurfit Kappa family of 46,000 people.
“There is a strong cultural fit between our businesses and we are excited about the potential for Cartones del Pacifico within the Smurfit Kappa integrated system.”
Smurfit Kappa recently announced an investment of €11.5 million in its Zülpich paper mill in Germany, which produces approximately 500,000 tonnes of paper annually, to fund a fuel conversion project aimed at reducing the plant’s CO2 emissions.
In February of this year, the company reported an EBITDA of €1.51 billion for full-year 2020, which it said was ahead of its stated guidance, despite being 9% lower than the previous year.