Smurfit Kappa buys two US plants
Analysts say the deals are “consistent with the company’s strategy of growing its North American business
Smurfit Kappa’s North American unit has bought two small packaging companies in California for an undisclosed sum.
Dublin headquartered Smurfit has bought Empire Packaging and Displays, a 60-year old company located near Los Angeles. It has also bought Scope Packaging, which operates from a 70,000 sq ft facility near Anaheim.
The two small operations will be integrated into its growing operations in the US and the north of Mexico. Smurit has been steadily building up its operations in the region since its 2013 purchase of Orange County for $340 million.
In addition to its Mexican operations, Smurfit now owns at least four plants in southern California, as well as in Arizona and Texas.
Davy stockbrokers said the Scope deal was “consistent with the company’s strategy of growing its North American business”.
Chief executive Tony Smurfit has indicated it will continue to seek out acquisitions worth up to €300 million each year.