Further re Asset Swap with Mondi

 
TIDMSKG 
 
 

  Completion of Asset Swap Agreement 
 

  Acquisition of UK Corrugated Assets 
 

  Disposal of Western European Sack Converting Operations 
 

  SKG.I SKG.L 
 

  Dublin, London, 19 April, 2010 | Smurfit Kappa Group plc ('SKG' or the 'Group'), one of the world's largest integrated manufacturers of paper-based packaging products, with operations in Europe and Latin America, today announces that it has signed an asset swap agreement with Mondi Group ('Mondi'). SKG will acquire Mondi's corrugated operations in the United Kingdom, while Mondi will acquire SKG's Western European sack converting operations. The total cash cost of the asset swap for SKG is EUR51 million. 
 

  The agreement is conditional on customary completion conditions. 
 

  Acquisition of Mondi's UK Corrugated Assets 
 

  SKG is acquiring Mondi's UK corrugated operations, comprising three corrugated box plants, for a consideration of EUR43 million (GBP38 million), on a cash and debt free basis. The three facilities reported a combined 2009 full year EBITDA of EUR8.0 million (GBP7.1 million), and a profit before tax of EUR2.0 million. 
 

  Disposal of SKG's Western European Sack Converting Assets 
 

  SKG is disposing of its Western European sack converting operations, comprising 4 plants in France, 3 in Spain, and 1 in Italy, as well as a number of sales offices. In 2009, these operations reported an EBITDA loss of EUR4.4 million and a loss before tax of EUR12.6 million. On disposal, SKG will incur exceptional write-offs of approximately EUR 30 million, including a net cash cost of EUR8 million. 
 

  Gary McGann, Smurfit Kappa Group CEO, commented: "We are pleased to announce this asset swap agreement, which further strengthens the Group's leadership in its core corrugated packaging grade, and enhances the efficiency of its integrated system in the increasingly attractive UK market." 
 

  ENDS 
 
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