Smurfit Kappa has agreed an asset swap deal with Mondi Group. Under the deal, the group will buy Mondi's corrugated operations in the UK, while Mondi will buy Smurfit's Western European sack converting operations.
The company says the total cash cost of the asset swap is €51m.
Mondi's corrugated operations in the UK is made up of three corrugated box plants. The Western European sack converting operations comprises four plants in France, three in Spain and one in Italy as well as a number of sales offices.
Smurfit Kappa's CEO Gary McGann said the deal will strengthen the group's position in its core corrugated packaging grade and will enhance the efficiency of its integrated system in the 'increasingly attractive UK market'.
