Packaging giant Smurfit Kappa has signed an agreement to acquire a Brazilian company for an undisclosed sum.
The company informed investors of the deal to buy PaperBox, a packaging plant located in Saquarema, 70km east of Rio de Janeiro in Brazil, on Monday.
The transaction, which is subject to the approval of regulatory bodies, is expected to close at the end of October.
Brazil is the largest corrugated cardboard market in Latin America and the southeast region.
Smurfit Kappa said the acquisition represents a further expansion of its operational footprint in Brazil as it currently operates in three other states: Minas Gerais, Rio Grande do Sul and Ceará.
“We are very proud to expand our footprint in Brazil to meet the growing demand for innovative and sustainable packaging,” said Laurent Sellier, chief executive of Smurfit Kappa in the Americas.
“This acquisition will broaden and strengthen our presence in the country, improve our production capabilities and enable us to continue to create new opportunities and form new partnerships with customers.”
Manuel Alcalá, chief executive of Smurfit Kappa in Brazil, added: “Smurfit Kappa believes in Brazil and in the opportunities to deliver growth by continuing to add value to our customers business.
“PaperBox has a distinguished history in the region and a special commitment to all stakeholders. This is a legacy that Smurfit Kappa will build upon.”