- Oct 9, 2024
- 2 min read
Mondi has entered into an agreement to acquire the German, Benelux (Belgium, the Netherlands and Luxembourg) and UK corrugated converting and solid board operations of Schumacher Packaging.
With an enterprise value of €634 million, the deal is set to expand Mondi’s corrugated footprint in Western Europe and adds complementary fibre-based products, focused on eCommerce and FMCG, to enhance its existing customer offering.
The acquisition includes seven corrugated converting plants, two solid board mills and four solid board converting plants, representing around 2,200 employees, which will boost Mondi’s existing network of corrugated plants across Central and Eastern Europe.
Two high-tech mega-box plants, located in German towns Ebersdorf and Greven, are among the acquired facilities. Schumacher says that these two plants have 'best-in-class production speed and operational efficiency as well as a highly skilled workforce’.
The deal will expand Mondi’s eCommerce offering – particularly in Germany, which is the largest packaging market in Europe. This presents opportunities for Mondi to introduce its range of products to a wider array of customers as they increasingly transition towards more sustainable packaging solutions.
Mondi 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.”
King continued: “We are delighted to be acquiring these assets and look forward to welcoming our new Schumacher Packaging colleagues and customers to Mondi. On completion, Mondi will have an enhanced customer proposition and a strong platform for further growth.”
Björn and Hendrik Schumacher, co-CEOs of Schumacher Packaging, will be retained as a strategic adviser and as chief operating officer of solid board, respectively. Mondi expects their continued involvement to ensure a smooth transition and support the ongoing development of the combined business.
Björn Schumacher commented:
“Our aim was to find a company that shares our entrepreneurial vision for the industry and has the size and strength to actively and sustainably shape the future of packaging. We have found an ideal partner for this in Mondi.”
The agreement with Mondi is part of Schumacher Packaging's strategy for the future. Introduced in July, the strategy aims to integrate the firm into larger, more international companies.
A similar solution was agreed with Spain’s Saica Group for Schumacher Packaging's subsidiary in Poland in July this year. Once complete, the deal will see Saica take over all of Schumacher’s sites in the region, including two corrugated cardboard plants in Bydgoszcz and Wroclaw, two paper mills and three service centres, as well as all employees and management.
Björn concluded: “The fact that we have found two renowned partners for both our Polish subsidiary in Poland and Schumacher Packaging Group’s Western European operations within a very short space of time, who are ideally suited to our objectives, is impressive proof of the strength and attractiveness of our company”.
The transaction for its Western European operations, which is subject to certain customary regulatory approvals, is expected to close in the first half of 2025.
