Jefferson Smurfit Group and Kappa Packaging are to merge, forming a combined company that would become a world leader in corrugated and a European leader in containerboard.
The proposed Smurfit Kappa Group would combine JSG's leading market position in Latin America and existing market positions in Western and Southern Europe with Kappa's positions in Northern and Eastern Europe. These operations span 23 European and nine Latin American countries, with capacity for 6.1Mt of containerboard and 5.1Mt of corrugated. The workforce totals 43,000 and revenue, based on 2004 figures, is €7.6 billion.
The proposed board, for the merged entity, is: chairman, Dr Michael Smurfit, deputy chairman, Frits Beurskens, chief executive officer, Gary McGann, president and chief operating officer, Tony Smurfit, chief financial officer, Ian Curley.
Jefferson Smurfit Group ceo Gary McGann comments: "A combination of JSG and Kappa would produce a focused leader in paper based packaging, with compelling strategic, operational and geographic fit. A well invested asset base, together with an extensive geographic presence across Europe, should significantly enhance our ability to serve current and prospective customers."
The proposed merger is subject to EU competition approval and consultation with employee representatives.
| Contacts |
| JSG Tel: +353 1 669 0030 Kappa Tel: +44 (0) 20 7269 7247 |
