Statement re Expansion of Corrugated Packaging ...

Statement re Expansion of Corrugated Packaging Operations in the UK

Smurfit Kappa Group PLC

Statement re Expansion of Corrugated Packaging Operations in the UK

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Dublin, London | 15 April 2015: Smurfit Kappa Group (’SKG’ or the ‘Group’) one of the world’s largest integrated manufacturers of paper-based packaging products with operations in Europe and the Americas, is pleased to announce that it has agreed to acquire Inspirepac, a non-integrated corrugated, high quality print and display business in the UK (the ‘Transaction’) from the Logson Group.

Inspirepac is a private company with 279 employees, and operates two packaging plants and a further two erecting plants in the North of England. The transaction will further enhance Smurfit Kappa’s market leading position in the UK market, and build on our existing capabilities in the high quality print and Point of Sale market segments.

The transaction will be completed for a consideration of £43.5 million and will be immediately earnings accretive. It is expected to close in the second quarter of 2015 subject to customary closing conditions. Based on 2014 EBITDA of £6 million and expected year one synergies of approximately £1.2 million, the Group will complete the acquisition at a post synergies multiple of 6.0 times EBITDA.

Tony Smurfit, COO and President of Smurfit Kappa Group commented: “We are delighted with the announcement of this acquisition and look forward to welcoming the Inspirepac team into Smurfit Kappa UK. They have built excellent businesses in many product and customer sectors which will add to our existing strengths, and support our continued drive to ‘Open the Future’ within the UK packaging market.”

About Smurfit Kappa

Smurfit Kappa is one of the leading providers of paper-based packaging solutions in the world, with around 42,000 employees in approximately 350 production sites across 32 countries and with revenue of €8.1 billion in 2014. We are located in 21 countries in Europe, and 11 in the Americas. We are the only large-scale pan-regional player in Latin America.

With our pro-active team we relentlessly use our extensive experience and expertise, supported by our scale, to open up opportunities for our customers. We collaborate with forward thinking customers by sharing superior product knowledge, market understanding and insights in packaging trends to ensure business success in their markets. We have an unrivalled portfolio of paper-packaging solutions, which is constantly updated with our market-leading innovations. This is enhanced through the benefits of our integration, with optimal paper design, logistics, timeliness of service, and our packaging plants sourcing most of their raw materials from our own paper mills. Our products, which are 100% renewable and produced sustainably, improve the environmental footprint of our customers.