International Paper announced today that it signed an agreement to acquire Europac’s Tangier box plant for 40 MM Euros.
With this acquisition, the company expects to realise significant synergies in its box system in Morocco as well as from the paper integration with the recently acquired Madrid, Spain, mill and its existing recycled containerboard mill in Kenitra, Morocco.
International Paper obtained all relevant approvals by Moroccan authorities, including antitrust approval. Closing of the transaction is expected for the end of June.
Packaging is a core business for International Paper and Morocco with is attractive investment climate and growing economy is a strategic priority for the company. “As we are constantly aiming at providing superior value for existing and new customers, the Tangier box plant represents an attractive opportunity to further grow our successful corrugated packaging business in Morocco by complementing our existing asset base with a state-of-the art box making facility”, said Eric Chartrain, Vice President & General Manager of International Paper’s corrugated packaging business in EMEA.
“Moreover, the Tangier facility allows us to further integrate our Kenitra mill as well as realise supply chain and converting synergies with our other box plants in Morocco.” He continued: “This acquisition is a significant investment into the future of our corrugated packaging business in Morocco, our customers, our employees, and our communities, and we are excited to be making this strategic step.”
Organisationally, the Tangier facility will become part of International Paper’s Moroccan corrugated packaging business.