Dublin, Ireland 25 September 2012 -- Smurfit Kappa Group is strengthening its business outside of Europe with the acquisition of integrated packaging manufacturer Orange County Container Group. The company operates plants in Mexico and the USA.
Dublin-based Smurfit Kappa Group (SKG) has announced plans to acquire Orange County Container Group (OCCG), a producer of folding carton, corrugated board and containerboard with mills in northern Mexico and the southern United States. SKG is acquiring the Californian company, which employs 2,800 people (2,000 of whom in Mexico), for a cash consideration of $340 million (around €260 million).
OCCG is privately owned and operates two box plants, three sheet plants and three fulfilment centres as well as seven distribution centres in Mexico. It also operates a box plant and a sheet plant in the southern United States. Its paper factory with two PMs and a capacity of 290,000 tpy of recycled containerboard is based in Dallas, Texas. The plant is supplied by seven recycling centres owned by OCCG in Texas, Oklahoma and Arkansas.
In its packaging segment, OCCG produces, markets and sells high graphics and conventional corrugated containers, as well as point-of-purchase displays.
SKG currently operates three paper machines for paper and board, nine box plants and two cartonboard production facilities in Mexico. The transaction is subject to approval by the competent authorities.