Jefferson Smurfit and competitor Kappa Packaging said today they will merge to create the biggest paper packaging company in Europe.
Jefferson Smurfit owner Madison Dearborn will retain 58.3 per cent of the new company, which will be called Smurfit Kappa Group. Kappa owners Cinven and CVC Capital Partners will keep the rest.
Along with shares of the new company, Jefferson Smurfit will issue about €300 million in cash and a €75 million promissory note to Kappa's stakeholders.
The merged corrugated paper and containerboard maker would have 43,000 employees and operations across 23 European and nine Latin American countries.