Mondi, a sustainable packaging and paper company, has announced an agreement to acquire the Western Europe packaging assets of Schumacher Packaging.
The deal carries an enterprise value of €634m ($696m) and includes the corrugated converting and solid board operations in Germany, Benelux, and the UK.
The acquisition is poised to enhance Mondi's corrugated packaging capabilities in Western Europe and complement its fibre product offerings in the e-commerce and FMCG sectors.
It also aligns with its strategic goals of expanding its European corrugated packaging business, investing in cost-advantaged assets, and delivering innovative solutions to customers.
Mondi Group CEO Andrew King said: “Our focus is on investing to meet the growing market demand for sustainable packaging while driving value for our stakeholders.
"This acquisition significantly increases our corrugated converting capacity, extends our reach across Western Europe, and offers strong downstream integration opportunities, while broadening our customer offering with a complementary fibre-based product range."
The transaction comprises of seven corrugated converting plants, two solid board mills, and four solid board converting plants, adding more than one billion square feet of capacity to Mondi’s corrugated plants across Central and Eastern Europe.
The newly acquired sites feature advanced mega-box plants in Ebersdorf and Greven, Germany, known for their production speed and operational efficiency.
These additions to Mondi's portfolio are expected to augment its e-commerce offerings, particularly in Germany, Europe's largest packaging market.
Schumacher Packaging's Western European packaging assets reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of €66m in 2023.
This figure is projected to increase following the ramp-up of Greven's capacity and the realisation of €22m in cost synergies over the next three years. This excludes one-off cash costs of about €18m.
The transaction, awaiting regulatory approvals, is expected to close in the first half of 2025.
Following the acquisition, Schumacher Packaging co-CEOs Bjoern Schumacher and Hendrik Schumacher will continue their involvement, serving as strategic adviser and chief operating officer solid board, respectively, to facilitate a smooth transition and support future growth.
In August 2024, Mondi reported underlying EBITDA of €565m ($611.54m) for the first half of financial year 2024.
