{"id":2982,"date":"2024-10-09T09:21:50","date_gmt":"2024-10-09T13:21:50","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=2982"},"modified":"2024-10-09T09:21:50","modified_gmt":"2024-10-09T13:21:50","slug":"mondi-to-acquire-schumacher-packagings-western-european-assets","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=2982","title":{"rendered":"Mondi to acquire Schumacher Packaging\u2019s Western European assets\u00a0"},"content":{"rendered":"


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The deal includes Schumacher Packaging\u2019s packaging assets in Western Europe. Credit: \u00a9 2024 Mondi. <\/figcaption><\/figure>\n<\/p><\/div>\n

Mondi<\/a>, a sustainable packaging and paper company, has announced an agreement to acquire the Western Europe packaging assets of Schumacher Packaging.\u00a0<\/p>\n

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The deal carries an enterprise value of \u20ac634m ($696m) and includes the corrugated converting and solid board operations in Germany, Benelux, and the UK.\u00a0<\/p>\n

The acquisition is poised to enhance Mondi\u2019s corrugated packaging capabilities in Western Europe and complement its fibre product offerings in the e-commerce and FMCG sectors.\u00a0<\/p>\n

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.\u00a0<\/p>\n

Mondi Group CEO Andrew King said: \u201cOur focus is on investing to meet the growing market demand for sustainable packaging while driving value for our stakeholders.\u00a0<\/p>\n

\u201cThis 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.\u201d\u00a0<\/p>\n

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\u2019s corrugated plants across Central and Eastern Europe.\u00a0<\/p>\n

The newly acquired sites feature advanced mega-box plants in Ebersdorf and Greven, Germany, known for their production speed and operational efficiency.\u00a0\u00a0<\/p>\n

These additions to Mondi\u2019s portfolio are expected to augment its e-commerce offerings, particularly in Germany, Europe\u2019s largest packaging market.\u00a0<\/p>\n

Schumacher Packaging\u2019s Western European packaging assets reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of \u20ac66m in 2023.\u00a0<\/p>\n

This figure is\u00a0projected to increase following the ramp-up of Greven\u2019s capacity and the realisation of \u20ac22m in cost synergies over the next three years. This\u00a0\u00a0excludes one-off cash costs of about \u20ac18m.\u00a0<\/p>\n

The transaction, awaiting regulatory approvals, is expected to close in the first half of 2025.\u00a0\u00a0<\/p>\n

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.\u00a0<\/p>\n

In August 2024, Mondi reported underlying EBITDA<\/a> of \u20ac565m ($611.54m) for the first half of financial year 2024.\u00a0\u00a0<\/p>\n

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