Paper and packaging maker Smurfit Kappa has acquired North American company Orange County Container Group for $340m.
Orange County Container Group (OCCG) has operations in Southern California and Mexico and produces corrugated cardboard and containerboard for use in packaging.
Smurfit Kappa has agreed to pay $340m (€260m) cash to buy OCCG. The acquisition will be funded from its existing cash resources.
In a statement to the stock exchange Smurfit chief executive Gary McGann said the move would strengthen its existing operations in Mexico. OCCG has eight factories and seven distribution centres in Mexico.
The company said it had already identified $14m worth of savings which it hoped to achieve from combining its operations with OCCG's over the next two years.
