Mondi has revealed today that it has entered into an agreement to acquire the German, Benelux and UK corrugated converting and solid board operations of Schumacher Packaging, a move anticipated to expand Mondi’s corrugated footprint in Western Europe and add fibre-based products for e-commerce and FMCG to its portfolio.
Mondi says the announcement is in line with its strategy to expand its corrugated packaging business in Europe and adjacent markets; invest in cost advantaged assets and further integrate upstream and downstream operations to ensure security of supply for customers and optimized operations; and continue to partner with customers to deliver solutions.
Apparently, the acquisition comprises seven corrugated converting plants, two solid board mills and four solid board converting plants, adding over 1 billion square meters of capacity when fully operational. Among the acquired sites are two mega-box plants in Germany, located at Ebersdorf and Greven, which are said to have ‘best-in-class’ production speed and operational efficiency.
In 2023, Schumacher Packaging’s Western European Packaging Assets reportedly delivered an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of €66 million. The EBITDA contribution is expected to increase as the capacity at Greven grows and the identified €22 million of cost synergies are realized over the three years following completion. This excludes expected one-off cash costs to achieve of approximately €18 million.
The transaction, which is subject to certain customary regulatory approvals, is expected to close in the first half of 2025. Mondi states that Mr Bjoern Schumacher and Mr Hendrik Schumacher, co-CEOs of Schumacher Packaging, will be retained as a strategic adviser and as Chief Operating Officer Solid Board, respectively.
We recently caught up with Mondi’s growth and sustainability director, Paulus Goess, at FachPack 2024 to learn more about its paper, plastic and composite solutions. In the same month, Amazon and Mondi partnered to develop a paper-padded envelope with paper-based, shock-absorbent lining, in an effort to replace plastic bubble wrap while protecting deliveries during transit.
More recently, the company co-founded Paper Sacks Go Circular Spain, an alliance of 12 companies aiming to improve the circularity of used paper bags in the Spanish construction industry. The alliance plans to find synergies between construction and demolition waste streams to increase volumes and pursue economies of scale, starting with paper bags for construction materials.
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