H2 Equity Partners agrees to sell Reparenco to Smurfit Kappa Group


H2 Equity Partners agrees to sell Reparenco to Smurfit Kappa Group

May 2018

H2 Equity Partners is pleased to announce that it has agreed to sell Reparenco, a paper and recycling business in the Netherlands, to 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 the Americas, for EUR 460 million.

Halex is a German industrial group – comprising of two businesses – that provides metal hardening and heat treatment services for a variety of end markets, and that manufactures complex steel dies for the aluminum extrusion industry.

Reparenco operates a two machine paper mill in the Netherlands with a capacity of 675,000 tonnes together with a 750,000 tonne recovered fibre operation. Reparenco’s strong strategic fit with SKG’s existing European businesses is expected to deliver significant synergies in the near-term in a number of areas, including increased integration of containerboard and the recycling operations into the Smurfit Kappa Group.
Smurfit Kappa Group CEO, Tony Smurfit, commented: “We are pleased to announce our agreement to acquire Reparenco, successfully concluding a process which began on February 1st this year. The acquisition of Reparenco is complementary with our existing business; strengthens our integrated business model; and accelerates a central element of our medium term plan. We welcome all the Reparenco employees to Smurfit Kappa. We believe there is a strong cultural fit between our businesses and that, together, we will generate value in the short, medium and long term for all our stakeholders.”
Parenco CEO, Raymond Jolink, commented: “We are very thankful for the collaborative partnership with H2 over the last years. With the support of H2 we were able to implement our strategy for growth and innovation and strengthened our market position. At this time, we are delighted to become part of the Smurfit Kappa Group. With their extensive experience and expertise in paper-based packaging products SKG is an ideal partner for Reparenco. Together we can take our business to the next level.”

H2 Equity Partners partner Harmen Geerts, commented: ”We are proud of what we have achieved with Reparenco over the last years. And it was a great pleasure to work with the Reparenco team. Together, we have transformed the company in a highly competitive packaging paper business. We are convinced that we have found the ideal partner for Reparenco going forward in SKG. We wish Reparenco and SKG a successful future.”

Reparenco and H2 were advised by William Blair (M&A), McKinsey (commercial), Deloitte (financial/tax), Houthoff (legal) and Tauw (environmental).
For more information, please see the press release from SKG.

About H2 Equity Partners
H2 Equity Partners, founded in 1991, is an independent investment firm with offices in Amsterdam and London. H2 focuses on medium sized companies that are uniquely positioned and provide significant growth potential. H2 offers these businesses a combination of capital and active management support to realise the untapped potential. H2 has a robust, multi-sector track record in building stronger companies, with a suistanable competitive advantage and profitable growth.