Smurfit Kappa has signed an asset swap agreement with Mondi Group. SKG will acquire Mondi’s corrugated operations in the UK, while Mondi will acquire SKG’s Western European sack converting operations. The total cash cost of the asset swap for SKG is €51m. The agreement is conditional on customary completion conditions.
SKG is acquiring Mondi’s UK corrugated operations, comprising three corrugated box plants, for €43m (£38m), on a cash and debt free basis. They reported a combined 2009 full year EBITDA of €8.0m (£7.1m), and a profit before tax of €2m.
SKG is disposing of its Western European sack converting operations; four plants in France, three in Spain, and one in Italy, and several sales offices. In 2009, these operations reported an EBITDA loss of €4.4m and a loss before tax of €12.6m. On disposal, SKG will incur exceptional write-offs of approximately €30m, including a net cash cost of €8m.
