Weekly

Mondi to acquire Western Europe packaging assets of Schumacher Packaging

Frauke Schmidt, 9 October 2024

Mondi today announces that it has entered into an agreement to acquire the German, Benelux and UK corrugated converting and solid board operations of Schumacher Packaging.

The recycled corrugated case material mill Cartiere Modesto Cardella near Lucca, Italy, and the Nyrsko site in Czech Republic are not affected by the transaction.

The acquisition comprises 7 corrugated converting plants, 2 solid board mills and 4 solid board converting plants. These operations complement Mondi’s existing network of corrugated plants across Central and Eastern Europe, adding over 1 billion m² of capacity when fully operational, Mondi stated.

The transaction, which is subject to certain customary regulatory approvals, is expected to close in the first half of 2025. It will expand Mondi’s corrugated footprint in Western Europe and add complementary fibre-based products, focused on e-commerce and fast moving consumer goods (FMCG).

Cost synergies of €22m expected

In 2023, Schumacher Packaging’s Western European Packaging Assets delivered an adjusted Ebitda of €66m. The Ebitda contribution is expected to increase as the recently added capacity at the Greven site in Germany ramps up. Identified €22m of cost synergies are expected to be realised over the three years following completion. This excludes expected one-off cash costs of approximately €18m, Mondi said.

Björn Schumacher and Hendrik Schumacher, co-CEOs of Schumacher Packaging will remain within the company, respectively as a strategic adviser and as Chief Operating Officer Solid Board.

Commenting on the acquisition, Andrew King, Mondi Group CEO, 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. 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.”

Source: Euwid