Tuesday, March 10, 2015 11:45 am

Smurfit Kappa Group announced that it has agreed to acquire Grupo CYBSA, a non-integrated corrugated, folding cartons and flexible packaging manufacturer with operations in El Salvador and Costa Rica.

Following the completion of over Euro 160 million of acquisitions in the Americas in 2014, the acquisition of CYBSA will further enhance SKG's presence in the region, providing us with an unrivaled packaging footprint across 12 countries from the southern United States to Argentina, the company said.

The transaction, which will be immediately earnings accretive, is expected to close in the second quarter of 2015 subject to customary closing conditions and regulatory approval.

Based on 2014 EBITDA of almost $13 million and expected synergies of approximately $6 million, of which over $4 million will be delivered in year one, the Group will complete the acquisition at a post synergies multiple of 5.5 times EBITDA.

Gary McGann, Smurfit Kappa Group CEO, said: "We are very pleased to announce our agreement to acquire CYBSA and look forward to welcoming the excellent team from CYBSA into the Smurfit Kappa Group. The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG's capacity to provide innovative, insight-led, differentiated and value enhancing packaging solutions to both current and prospective customers throughout the Americas."