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Smurfit Kappa Group (SKG)
dreamcatcher
- 20 Oct 2012 17:47
A FTSE 100 Company.
Smurfit Kappa is one of the leading producers of paper-based packaging
We operate in 32 countries - 21 in Europe, and 11 in the Americas - with around 41,000 employees and third party sales revenue amounted to €7.9 billion in 2013.
We are an integrated producer, with our packaging plants sourcing the major part of their raw material requirements from our own paper mills. In turn, the sourcing of recovered fibre and wood for the mills is managed through a combination of our own reclamation and forestry operations and purchases from third parties.
We primarily produce corrugated packaging, with our operations supported by a strong network of containerboard mills. As the market leader in both regions, we are strongly focused on the needs of our customers, with a market driven approach aimed at optimising the value of the package. In addition to corrugated and containerboard, we have leading positions in several other market segments including solid board and solid board packaging and graphic board.
Our headquarters are in Dublin with regional headquarters in Paris (Europe) and Miami (the Americas).
We are
No. 1 European market position in corrugated packaging, containerboard, solid board and solid board packaging
No. 2 World market position for the production of corrugated packaging
We turnover
€7.9 billion sales revenue in 2013
We employ
41,000 people worldwide
We operate in
21 countries in Europe
11 countries in the Americas
We own
38 mills (27 produce containerboard)
231 packaging converting plants
47 recovered fibre facilities
32 other production facilities
104,000 hectares of Latin American forest plantations
http://www.smurfitkappa.com/vHome/com/Pages/Default.aspx
dreamcatcher
- 20 Oct 2012 18:01
- 2 of 81
Mexican wave? Smurfit Kappa Group’s strategic advance into emerging markets
By Sally Cousins, Packaging Journalist
BRUSSELS, Oct. 2, 2012 (RISI) - Making an inroad into the US and Latin American packaging market is difficult in these highly consolidated market areas, but European market leaders are achieving a presence in the US and the emerging economies of Latin America.
Smurfit Kappa Group's (SKG) recent announcement that it will acquire private corrugated and containerboard maker Orange County Container Group (OCCG) for $340m is proof of this. OCCG has operations in northern Mexico and the southern United States and employs 2,800 people (2,000 of those are employed in Mexico), and is expected to generate $53m of earnings before interest, taxes, depreciation and amortization (EBITDA) for the full year 2012.
In its statement, SKG said that OCCG's strong strategic fit with the corrugated firm's existing business is expected to deliver at least $14m of synergies by the end of year two. The $340m cash consideration will be funded from the groups existing cash resources. It is anticipated the transaction will complete before the end of 2012 subject to customary completion conditions and regulatory approval.
SKG's recent move aims to further strengthen the company's position in higher growth markets. The company's containerboard and corrugated Mexican business includes three paper machines and nine box plants with containerboard production of approximately 295,000 tonnes/yr and corrugated shipments of 500 million square metres for the 12 months to June 2012. The acquisition will provide the company with a pro-forma total market share of approximately 17% of the Mexican market.
Transatlantic acquisitions - nothing new
Smurfit Kappa Group CEO Gary McGann comments on the acquisition. "The acquisition of OCCG provides a complementary portfolio of well-invested assets and quality people. This transaction further increases the contribution of our existing successful Latin American business; providing us with a very significant position within the key Maquiladora trading region and substantially strengthening our position in the higher growth Mexican market."
"Smurfit Kappa Group has a proven track record of identifying, acquiring and integrating businesses. This transaction creates synergies for the group delivering value and earnings growth for our shareholders," adds McGann.
This type of acquisition, according to Moorgate Capital's Nicholas Mockett isn't unusual and follows on from past transatlantic mergers and acquisitions. He cites Stone Container of Chicago, which used to have operations in Europe; International Paper has European businesses, and SCA had a significant foray into the USA.
In SKG's case Mockett feels the likely merger and acquisition deal driver is the serving of customers in multiple territories. "SKG may also be looking to diversify its exposure from Europe. Moreover, in the first wave of recession in 2007-2009, the emerging markets were the only regions not to drop into recession."
The reasoning for Latin American growth is clear, as Mockett explains. "Smurfit and other packaging companies are interested in earnings streams from these areas. Apart from higher growth, they are less likely to be over supplied and hence financial performance should be better."
According to Mockett the key South American packaging market is Brazil, with already a fairly consolidated paper packaging market with a handful of very large paper packaging companies. "These emerging market companies tend to trade on premium valuation multiples compared with their European counterparts.
He adds: "Combining that with their scale may render them too big to acquire. However they may appeal to the largest US paper packaging companies and the Europeans could acquire in the second tier."
Wall Street's Deutsche Bank research analyst Mark Wilde feels that the indicators are that the SKG acquisition is a good move. He says: "Although the deal caught us somewhat by surprise, the valuation is attractive and there is a good deal of industrial logic."
According to Wilde, the Mexican containerboard industry is entirely reliant on recycled fiber and has been squeezed as China has drawn an increasing amount of wastepaper from the southwestern US.
"OCCG also boosts Smurfit Kappa Group's share of the Mexican corrugated market without adding new capacity to the market. It's a bit hard to project OCCG's ultimate margin potential, but currently EBITDA margins in the 9.5% range are quite low. Part of this undoubtedly reflects low margins in the wastepaper reclamation operations."
This kind of acquisition can provide a valuable way in to a consolidated market. Wilde explains: "With SKG trading at very low valuation multiples, this transaction appears a far more sensible way of growing its Latin American footprint as opposed to paying a high multiple for an admission ticket in a market like Brazil (a move that has been rumored in the market)."
He adds: "Expansion in Latin America and Central/Eastern Europe enhances SKG's growth profile. Ultimately, it could also make SKG an interesting strategic partner for another globally-oriented packaging company."
By Sally Cousins, Packaging Journalist
BRUSSELS, Oct. 2, 2012 (RISI) - Making an inroad into the US and Latin American packaging market is difficult in these highly consolidated market areas, but European market leaders are achieving a presence in the US and the emerging economies of Latin America.
Smurfit Kappa Group's (SKG) recent announcement that it will acquire private corrugated and containerboard maker Orange County Container Group (OCCG) for $340m is proof of this. OCCG has operations in northern Mexico and the southern United States and employs 2,800 people (2,000 of those are employed in Mexico), and is expected to generate $53m of earnings before interest, taxes, depreciation and amortization (EBITDA) for the full year 2012.
In its statement, SKG said that OCCG's strong strategic fit with the corrugated firm's existing business is expected to deliver at least $14m of synergies by the end of year two. The $340m cash consideration will be funded from the groups existing cash resources. It is anticipated the transaction will complete before the end of 2012 subject to customary completion conditions and regulatory approval.
SKG's recent move aims to further strengthen the company's position in higher growth markets. The company's containerboard and corrugated Mexican business includes three paper machines and nine box plants with containerboard production of approximately 295,000 tonnes/yr and corrugated shipments of 500 million square metres for the 12 months to June 2012. The acquisition will provide the company with a pro-forma total market share of approximately 17% of the Mexican market.
Transatlantic acquisitions - nothing new
Smurfit Kappa Group CEO Gary McGann comments on the acquisition. "The acquisition of OCCG provides a complementary portfolio of well-invested assets and quality people. This transaction further increases the contribution of our existing successful Latin American business; providing us with a very significant position within the key Maquiladora trading region and substantially strengthening our position in the higher growth Mexican market."
"Smurfit Kappa Group has a proven track record of identifying, acquiring and integrating businesses. This transaction creates synergies for the group delivering value and earnings growth for our shareholders," adds McGann.
This type of acquisition, according to Moorgate Capital's Nicholas Mockett isn't unusual and follows on from past transatlantic mergers and acquisitions. He cites Stone Container of Chicago, which used to have operations in Europe; International Paper has European businesses, and SCA had a significant foray into the USA.
In SKG's case Mockett feels the likely merger and acquisition deal driver is the serving of customers in multiple territories. "SKG may also be looking to diversify its exposure from Europe. Moreover, in the first wave of recession in 2007-2009, the emerging markets were the only regions not to drop into recession."
The reasoning for Latin American growth is clear, as Mockett explains. "Smurfit and other packaging companies are interested in earnings streams from these areas. Apart from higher growth, they are less likely to be over supplied and hence financial performance should be better."
According to Mockett the key South American packaging market is Brazil, with already a fairly consolidated paper packaging market with a handful of very large paper packaging companies. "These emerging market companies tend to trade on premium valuation multiples compared with their European counterparts.
He adds: "Combining that with their scale may render them too big to acquire. However they may appeal to the largest US paper packaging companies and the Europeans could acquire in the second tier."
Wall Street's Deutsche Bank research analyst Mark Wilde feels that the indicators are that the SKG acquisition is a good move. He says: "Although the deal caught us somewhat by surprise, the valuation is attractive and there is a good deal of industrial logic."
According to Wilde, the Mexican containerboard industry is entirely reliant on recycled fiber and has been squeezed as China has drawn an increasing amount of wastepaper from the southwestern US.
"OCCG also boosts Smurfit Kappa Group's share of the Mexican corrugated market without adding new capacity to the market. It's a bit hard to project OCCG's ultimate margin potential, but currently EBITDA margins in the 9.5% range are quite low. Part of this undoubtedly reflects low margins in the wastepaper reclamation operations."
This kind of acquisition can provide a valuable way in to a consolidated market. Wilde explains: "With SKG trading at very low valuation multiples, this transaction appears a far more sensible way of growing its Latin American footprint as opposed to paying a high multiple for an admission ticket in a market like Brazil (a move that has been rumored in the market)."
He adds: "Expansion in Latin America and Central/Eastern Europe enhances SKG's growth profile. Ultimately, it could also make SKG an interesting strategic partner for another globally-oriented packaging company."
dreamcatcher
- 20 Oct 2012 18:06
- 3 of 81
In this weeks IC - Smurfit Kappa, based in Ireland, is overdue a rerating, highlighting its successful refinancing, a return to dividends and strong cash flow.
dreamcatcher
- 20 Oct 2012 18:08
- 4 of 81
7 November 2012 SKG Third Quarter and First Nine Months Results
dreamcatcher
- 07 Nov 2012 07:08
- 5 of 81
3rd Quarter ResultsHighlights
Strong EBITDA outcome of 280 million in the third quarter
Industry-leading EBITDA margins reflecting SKG"s continued focus on innovative packaging, cost and operating efficiency
Two successful bond offerings totalling 690 million resulting in reduced debt servicing costs, improved debt maturity profile and further diversification of funding sources
Acquisition of Orange County Container Group for US$340 million at 5.1x 2012 EBITDA post synergies
Expect year-end EBITDA in line with 2011
Performance Review and Outlook
http://www.moneyam.com/action/news/showArticle?id=4479339
Strong EBITDA outcome of 280 million in the third quarter
Industry-leading EBITDA margins reflecting SKG"s continued focus on innovative packaging, cost and operating efficiency
Two successful bond offerings totalling 690 million resulting in reduced debt servicing costs, improved debt maturity profile and further diversification of funding sources
Acquisition of Orange County Container Group for US$340 million at 5.1x 2012 EBITDA post synergies
Expect year-end EBITDA in line with 2011
Performance Review and Outlook
http://www.moneyam.com/action/news/showArticle?id=4479339
dreamcatcher
- 29 Nov 2012 16:05
- 6 of 81
dreamcatcher
- 03 Dec 2012 17:08
- 7 of 81
Smurfit Kappa pays $340m to acquire Orange County
StockMarketWire.com
Smurfit Kappa Group, a world leader in the integrated manufacture of paper-based packaging products with operations in Europe and Latin America, has completed the acquisition of Orange County Container Group (OCCG).
It is paying a total cash consideration of $340m, subject to customary post completion price adjustments. It is being funded from, the Group's existing cash resources.
OCCG is a corrugated and containerboard manufacturer with operations predominantly in Northern Mexico but also in the Southern United States and will form part of the Group's Latin America segment.
It employs 2,800 people (2,000 of whom are based in Mexico), and is expected to generate at least $53m of EBITDA for the full year 2012.
Gary McGann, Smurfit Kappa Group CEO, said: "We are very pleased to announce the completion of the acquisition of Orange County Container Group. This acquisition is fully consistent with our declared growth strategy, complements our existing Mexican business and increases our exposure to a demographically attractive and rapidly growing region."
StockMarketWire.com
Smurfit Kappa Group, a world leader in the integrated manufacture of paper-based packaging products with operations in Europe and Latin America, has completed the acquisition of Orange County Container Group (OCCG).
It is paying a total cash consideration of $340m, subject to customary post completion price adjustments. It is being funded from, the Group's existing cash resources.
OCCG is a corrugated and containerboard manufacturer with operations predominantly in Northern Mexico but also in the Southern United States and will form part of the Group's Latin America segment.
It employs 2,800 people (2,000 of whom are based in Mexico), and is expected to generate at least $53m of EBITDA for the full year 2012.
Gary McGann, Smurfit Kappa Group CEO, said: "We are very pleased to announce the completion of the acquisition of Orange County Container Group. This acquisition is fully consistent with our declared growth strategy, complements our existing Mexican business and increases our exposure to a demographically attractive and rapidly growing region."
dreamcatcher
- 13 Dec 2012 14:54
- 8 of 81
:-))
dreamcatcher
- 30 Mar 2013 19:33
- 9 of 81
A buy in this weeks Shares mag for those interested.
dreamcatcher
- 11 Apr 2013 18:14
- 10 of 81
Smurfit Kappa schedules Q1 results
StockMarketWire.com
Smurfit Kappa Group - one of the world's largest integrated manufacturers of paper-based packaging products, with operations in Europe, Latin America and North America - will release its first quarter results on 3 May.
At 1:19pm:
(LON:SKG) share price was +0.03p at 12.01p
Story provided by StockMarketWire.com
dreamcatcher
- 03 May 2013 07:07
- 11 of 81
1st Quarter Results
First Quarter Highlights
• Improving corrugated demand and paper price increases should support corrugated price increases in the second half of 2013
• SK Orange County (���SKOC��") integration and performance ahead of expectations. Synergy estimates doubled to US$28 million
• EBITDA margins in the Americas return to their historical range
• Proposed final 2012 dividend of 20.5 cent to be paid on 10 May
http://www.moneyam.com/action/news/showArticle?id=4588137
First Quarter Highlights
• Improving corrugated demand and paper price increases should support corrugated price increases in the second half of 2013
• SK Orange County (���SKOC��") integration and performance ahead of expectations. Synergy estimates doubled to US$28 million
• EBITDA margins in the Americas return to their historical range
• Proposed final 2012 dividend of 20.5 cent to be paid on 10 May
http://www.moneyam.com/action/news/showArticle?id=4588137
dreamcatcher
- 10 Jun 2013 22:49
- 12 of 81
Smurfit Kappa in refinancing talks
10 June 2013 | 16:27pm
StockMarketWire.com - Smurfit Kappa has confirmed it is is holding talks with its banks to refinance its senior secured credit facility with an unsecured relationship bank facility.
At 4:27pm:
[LON:SKG] share price was -0.02p at 11.75p
Story provided by StockMarketWire.com
10 June 2013 | 16:27pm
StockMarketWire.com - Smurfit Kappa has confirmed it is is holding talks with its banks to refinance its senior secured credit facility with an unsecured relationship bank facility.
At 4:27pm:
[LON:SKG] share price was -0.02p at 11.75p
Story provided by StockMarketWire.com
dreamcatcher
- 18 Jul 2013 22:17
- 13 of 81
Dublin, London, 2 July, 2013: Smurfit Kappa Group plc (��SSKG⬝ or the ��SGroup⬝), one of the world��"s largest integrated manufacturers of paper-based packaging products, with operations in Europe and the Americas, announces it will release 2013 second quarter results on Wednesday, 31 July 2013 at 07.00 BST (02.00 ET).
dreamcatcher
- 25 Jul 2013 18:53
- 14 of 81
Finals 31 July
Smurfit Kappa Group PLC (SKG:LSE) set a new 52-week high during today's trading session when it reached 14.81. Over this period, the share price is up 155.92%.
Smurfit Kappa Group PLC (SKG:LSE) set a new 52-week high during today's trading session when it reached 14.81. Over this period, the share price is up 155.92%.
dreamcatcher
- 28 Jul 2013 21:41
- 15 of 81
25 July - Smurfit Kappa Group announces successful completion of
1.375 billion Senior Credit Facility Re-financing
http://www.moneyam.com/action/news/showArticle?id=4638095
1.375 billion Senior Credit Facility Re-financing
http://www.moneyam.com/action/news/showArticle?id=4638095
dreamcatcher
- 31 Jul 2013 07:18
- 16 of 81
dreamcatcher
- 07 Feb 2014 22:10
- 17 of 81
Shares - momentum at packaging expert set to continue.
dreamcatcher
- 05 Apr 2014 19:41
- 18 of 81
Wed 9 Ex divi - Smurfit Kappa Group PLC [SKG] (0.3075 EUR)
dreamcatcher
- 02 May 2014 07:11
- 19 of 81
1st Quarter Results
First Quarter Key points
• Continued EPS growth year-on-year reflecting higher EBITDA and reduced interest expense
• Strong Free Cash Flow in the first quarter supporting committed medium term capital allocation measures
• Return on Capital Employed of 13.8%
• Adoption of the Sicad I rate for our Venezuelan operations in the first quarter
• S&P upgrade to BB+ rating reflecting significantly improved credit metrics
• Proposed final 2013 dividend of 30.75 cent to be paid on 9 May
http://www.moneyam.com/action/news/showArticle?id=4803501
First Quarter Key points
• Continued EPS growth year-on-year reflecting higher EBITDA and reduced interest expense
• Strong Free Cash Flow in the first quarter supporting committed medium term capital allocation measures
• Return on Capital Employed of 13.8%
• Adoption of the Sicad I rate for our Venezuelan operations in the first quarter
• S&P upgrade to BB+ rating reflecting significantly improved credit metrics
• Proposed final 2013 dividend of 30.75 cent to be paid on 9 May
http://www.moneyam.com/action/news/showArticle?id=4803501
dreamcatcher
- 30 Jul 2014 19:56
- 20 of 81
Half-yearly Report
Second Quarter & Half Year Key Points
• Pre-exceptional EPS growth of 46% year-on-year with EBITDA margin expansion to 14.3% for the first six months
• Robust capital structure with annualised cash interest reduced to 135 million
• Strong free cash flows supporting the delivery of previously announced capital allocation decisions
• Interim dividend increased by 50% to 15.375 cent reflecting confidence in future performance
• Recycled and kraftliner containerboard price increases announced
http://www.moneyam.com/action/news/showArticle?id=4858455
Second Quarter & Half Year Key Points
• Pre-exceptional EPS growth of 46% year-on-year with EBITDA margin expansion to 14.3% for the first six months
• Robust capital structure with annualised cash interest reduced to 135 million
• Strong free cash flows supporting the delivery of previously announced capital allocation decisions
• Interim dividend increased by 50% to 15.375 cent reflecting confidence in future performance
• Recycled and kraftliner containerboard price increases announced
http://www.moneyam.com/action/news/showArticle?id=4858455
dreamcatcher
- 05 Nov 2014 07:10
- 21 of 81
3rd Quarter Results
Third Quarter & First Nine Months Key Points
• Year to date pre-exceptional EPS growth of 55% reflecting a good operational performance and lower financing costs
• Continued growth in return on capital employed (ROCE") to 14.5%
• Strong free cash flow continues to support growth and lower leverage of 2.2 times net debt to EBITDA
• Implementation of price increase of 30 per tonne in both testliner and kraftliner
• Corrugated volume growth of 2% year-on-year to September 2014
• Immediately accretive acquisition of Bates Container for US$158 million completed in October 2014
• SKG to deliver 2014 EBITDA results in line with market expectations
http://www.moneyam.com/action/news/showArticle?id=4917217
Third Quarter & First Nine Months Key Points
• Year to date pre-exceptional EPS growth of 55% reflecting a good operational performance and lower financing costs
• Continued growth in return on capital employed (ROCE") to 14.5%
• Strong free cash flow continues to support growth and lower leverage of 2.2 times net debt to EBITDA
• Implementation of price increase of 30 per tonne in both testliner and kraftliner
• Corrugated volume growth of 2% year-on-year to September 2014
• Immediately accretive acquisition of Bates Container for US$158 million completed in October 2014
• SKG to deliver 2014 EBITDA results in line with market expectations
http://www.moneyam.com/action/news/showArticle?id=4917217
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