Stora Enso has successfully completed its acquisition of De Jong Packaging Group and aims to further expand its portfolio into applications such as renewable packaging and e-commerce solutions at a combined corrugated packaging capacity of 2,000 million m2.
Announced in September 2022, the acquisition came at an enterprise value of around €1,020 million. Regulatory clearances and employee consultation have both taken place and the acquisition was closed on 6th January 2023.
De Jong Packaging Group is one of the largest corrugated manufacturers in the Benelux with sixteen sites in the UK, Germany, Belgium, and the Netherlands. Its core business consists of the corrugated converting of specialty folding boxes, slotted or ‘American’ boxes, trays, corrugated sheets, and more. The company provides custom box designs, tray erecting, packaging automation, pre-printing and logistics services.
Stora Enso expects that the acquisition will allow it to expand into the Dutch, Belgian, German, and British corrugated packaging markets and strengthen its position in general European packaging sectors with a 1,200 million m2 increase in its corrugated packaging capacity – including De Jong Packaging Group’s ongoing expansion projects. These are set to be complete by 2025 and drive the companies’ combined capacity up to 2,000 million m2.
De Jong Packaging’s existing product portfolio is also anticipated to provide Stora Enso with a wider packaging portfolio in the fresh produce, e-commerce, and industrial packaging sectors.
“I am pleased to officially welcome De Jong Packaging Group as part of Stora Enso,” says Annica Bresky, president and CEO at Stora Enso. “This acquisition advances Stora Enso’s strategic direction by accelerating revenue growth and building market share in renewable packaging in Europe.”
Neil Osment, managing director at NOA, previously spoke to Packaging Europe about merger and acquisition activity amongst corrugated packaging companies in the UK. He attributed this to Brexit, the COVID-19 pandemic, and the financial security of the UK market for investors.
Smurfit Kappa also acquired Pusa Pack’s Spanish bag-in-box plant last November. The transition to a reportedly recyclable, biodegradable, and renewable corrugated pack is anticipated to reduce its plastic weight by 87%.