Smurfit Westrock has reached an agreement to acquire the Chilean Containerboard and Corrugated business of Empresas CMPC S.A. for consideration of $420m, which represents a post-synergy transaction multiple of less than 6x Adjusted EBITDA.
The company said in a statement that it believes the business is highly complementary to its existing operations and provides an excellent platform from which to continue growing alongside customers in Latin America.
These assets are strategically located close to the country’s key fishery and agricultural regions, complementing Smurfit Westrock’s existing corrugated business and represent the opportunity to acquire one of the leading positions in containerboard and corrugated in Chile. The well-invested paper machine, located in Santiago, produces approximately 250,000 tons per year and will strengthen our regional paper system. It will allow us to integrate recycled paper into our operations in Argentina, Peru, and Ecuador, while also enabling us to route kraftliner from Brazil and North America into the acquired corrugated assets in Chile.
Completion is expected during the first half of 2027, subject to customary closing conditions, including regulatory approvals.
Tony Smurfit, President and CEO, said, “Opportunities to acquire a special business like this one are rare. CMPC has nurtured and grown this business over many decades and brings tremendous expertise into the Smurfit Westrock organisation. With both the extensive industry knowledge and geographic footprint that Smurfit Westrock brings to our new colleagues, I am very excited about future opportunities for growth and development across the region. I am equally pleased to expand our presence in the Chilean market which, over decades, has shown strong growth and resilience.”
Alvaro Henao, CEO, Smurfit Westrock Latam, added, “In our previously announced Medium-Term Plan, we identified Latam as a region of growth and development both through internal investment and acquisition. I am particularly happy to reach this agreement to acquire world- class assets in Chile with a formidable team that we look forward to welcoming into the Smurfit Westrock organisation. This firmly establishes Smurfit Westrock as the leading player in Chile and further strengthens our regional footprint.”
