Jefferson Smurfit Puts in Agreed Bid for Norcor

Irish-based paper and packaging company Jefferson Smurfit Group Plc has announced an agreed bid for Britain's Norcor Holdings Plc, valuing the packaging firm at about 18 million pounds (US$29 million). Jefferson, which already owns 29.95% of Norcor, is offering 65 pence in cash plus a final dividend of two pence per Norcor share.

Norcor revealed last week it had received an approach, which might lead to an offer for the group.

Jefferson Smurfit said the acquisition would help strengthen its position in paperboard and paper-based packaging. Norcor is one of the largest U.K. manufacturers of corrugated board sheets, with production and warehousing facilities in Norwich in eastern England and a customer base spanning Britain and Western Europe.

Norcor had sales of 39.4 million pounds in calendar 1998 and made pre-tax profits of 1.1 million. Net assets at June 30, 1999, were 17.2 million pounds.

Jefferson Smurfit said the deal would boost its position in the United Kingdom as well as broadening its business by adding Norcor's speciality product Norflute. Norcor would benefit because as a stand-alone business it was facing intense competition due to over-capacity in its sector of the market.