Smurfit Kappa has agreed to acquire Grupo CYBSA, which has operations in El Salvador and Costa Rica.

The paper product manufacturer said the acquisition, which is due to be completed by the end of June, would help it expand its business in Central America and would add to its earnings immediately.

CYBSA operates five packaging plants across the two countries and employs around 1,000 people. 

By the end of last year it had net assets of around $40m and also serves customers in Guatemala and Honduras.