Statement re Completion of Acquisition

Statement re Completion of Acquisition

Smurfit Kappa Group PLC

Completion of Acquisition of Orange County Container Group

SKG.I SKG.L

Dublin, London | 3 December, 2012: Smurfit Kappa Group plc (‘SKG’ or the ‘Group’) a world leader in the integrated manufacture of paper-based packaging products with operations in Europe and Latin America, is pleased to announce that it has completed the acquisition of Orange County Container Group (the “Business” or “OCCG”) for a total cash consideration of US$340 million (c. €260 million) (the “Transaction”) on 30^th November 2012. This is subject to customary post Completion price adjustments. The US$340 million cash consideration is being funded from, and represents a highly effective use of, the Group's existing cash resources.

OCCG is a corrugated and containerboard manufacturer with operations predominantly in Northern Mexico but also in the Southern United States (“US”) and will form part of the Group’s Latin America segment. OCCG employs 2,800 people (2,000 of whom are employed in Mexico), and is expected to generate at least US$53 million of EBITDA for the full year (“FY”) 2012.

Gary McGann, Smurfit Kappa Group CEO, said:

"We are very pleased to announce the completion of the acquisition of Orange County Container Group. This acquisition is fully consistent with our declared growth strategy, complements our existing Mexican business and increases our exposure to a demographically attractive and rapidly growing region. We remain comfortably within our stated leverage guidance of below three times and the acquisition delivers value through earnings accretion (year 1).

Our focus now is on the effective integration of our businesses in the region which gives us an exciting platform to continue to provide creative packaging solutions to both current and prospective customers.”

ENDS

About Smurfit Kappa Group

Smurfit Kappa Group is a world leader in paper-based packaging with operations in Europe and Latin America. Smurfit Kappa Group operates in 21 countries in Europe and is the European leader in containerboard, solidboard, corrugated, high-end consumer packaging, and solidboard packaging and has a key position in several other packaging and paper market segments, including graphicboard and sack paper. Smurfit Kappa Group also has a growing base in Eastern Europe, a bag-in-box facility in Canada and operates in 9 countries in Latin America where it is the only pan regional operator.

Forward Looking Statements

Some statements in this announcement are forward-looking. They represent expectations for the Group’s business, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. The Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group’s control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.

Contacts	Â	Â	Â
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Seamus Murphy				FTI Consulting
Smurfit Kappa Group
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Tel: [phone]				Tel: [phone]
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