Smurfit Kappa

Activity
Packaging
Acquired
Jul 1998
Realised
Jan 2013
Sector
Industrials

Business
In July 1998, Cinven led the buyout of Kappa Packaging from Dutch company KNP BT. It is a European market leader in fibre board, corrugated and solid board packaging.

Strategy
Cinven had identified Kappa Packaging as a strong, well managed business operating in a consolidating industry that presented opportunities for growth organically and by acquisition. Multinational customers were demanding pan-European solutions for their packaging requirements, while the company's efficient production techniques could also be applied to under-performing assets. The first acquisition, SCAO (Société des Cartonneries de l'Atlantique en Ondulé), was successfully completed in 2000 to expand the manufacturing presence in France. In a transformational acquisition, Kappa Packaging then purchased Swedish company AssiDomän's corrugated and containerboard activities in 2001 to create a European market leader.

Progress
Pursuant to the strategy of consolidating the European market, in December 2005, Kappa Packaging and Jefferson Smurfit Group merged to create the Smurfit Kappa Group. The company was subsequently successfully listed on the Irish and London Stock Exchanges in March 2007. The Group is a world player in paper based packaging, operating in 30 countries. It is the European leader in containerboard, solid board and corrugated packaging and also has market leading positions in both paper grades in Latin America. The Group currently employs approximately 38,000 people. In 2011, the company generated revenues in excess of €7.4 billion.

Cinven gradually sold its shares during the period February 2011 to January 2013. In January 2013, Cinven sold down its remaining shareholding in the business, bringing to an end Cinven’s investment in Smurfit Kappa.