skip to main content

Smurfit Kappa acquires Texas packaging firm

Smurfit Kappa hopes to complete the deal by the end of the fourth quarter
Smurfit Kappa hopes to complete the deal by the end of the fourth quarter

Smurfit Kappa has announced the acquisition of Texas-based firm Bates Container.

The company will pay an initial $150m for the corrugated packaging manufacturer, with a deferred payment of around $7.5m to be made at a later date.

Smurfit Kappa said the deal would give it greater reach in the Texas region, where Bates has a long-established customer base.

A large amount of materials will be supplied by Smurfit Kappa's Orange County mill in Dallas, it said, which would help it to create operational savings of $11.5m within two years of the acquisition.

The deal, which will be funded from Smurfit Kappa's cash reserves, is expected to be completed by the end of the year.