Sonoco and Smurfit Kappa Group announce South American acquisitions

By Jenny Eagle

- Last updated on GMT

Sonoco and Smurfit Kappa Group South America acquisitions

Related tags Smurfit kappa group South america Central america

Sonoco and Smurfit Kappa Group have expanded their reach in South America with Sonoco to acquire a majority interest in Graffo Paranaense de Embalagens (Graffo) in Brazil and Smurfit Kappa Group’s acquisition of Grupo CYBSA in El Salvador and Costa Rica.

Graffo founded in 2001, is a flexible packaging business in Pinhais, Curitiba, Brazil, with sales of approximately $35m in 2014. The transaction is expected to close in the second quarter of 2015.

Confectionery and dairy markets

It operates rotogravure printing presses, including a 10-color press, and lamination applications for the confectionery, dairy, pharmaceutical and industrial markets in Brazil.

Jack Sanders, president/CEO, Sonoco, said it will acquire a two-thirds stake in Graffo.

He added the company wants to grow its presence in ‘this important emerging market’ and wanted a partner with strong technical capabilities and established relationships with both large global consumer product companies and growing local businesses.

Grupo CYBSA (CYBSA) is a corrugated, folding cartons and flexible packaging manufacturer with net assets of approximately $40m in December 2014.

Five packaging plants

It operates five packaging plants in El Salvador and Costa Rica, from which it serves a growing customer base in its domestic markets, along with Guatemala and Honduras.

Following the completion of over €160m of acquisitions in the Americas in 2014, the acquisition of CYBSA will further enhance SKG’s presence in the region, across 12 countries from the southern US to Argentina.

The transaction reflects our continued commitment to increase our market presence in the Americas and will further enhance SKG’s capacity to provide insight-led, differentiated and value enhancing packaging to current and prospective customers throughout the Americas​,” said Gary McGann, CEO, Smurfit Kappa Group.  

The transaction, is expected to close in the second quarter of 2015.

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