LONDON: Mondi plc has entered into an agreement to acquire the German, Benelux and UK corrugated converting and solid board operations of Schumacher Packaging. 

This acquisition will expand Mondi’s corrugated footprint in Western Europe and add complementary fibre-based products, focused on eCommerce and FMCG, to enhance its existing customer offering.

Today’s announcement is in line with Mondi’s strategy to expand its Corrugated Packaging business in Europe and adjacent markets; to invest in cost advantaged assets; to further integrate upstream and downstream operations to ensure security of supply for customers and optimised operations, and to continue to partner with customers to deliver innovative solutions.

The acquisition comprises seven corrugated converting plants, two solid board mills and four solid board converting plants. These operations complement Mondi’s existing network of corrugated plants across Central and Eastern Europe, adding over 1 billion square meters of capacity when fully operational. 

Among the acquired sites are two state-of-the-art mega-box plants in Germany, located at Ebersdorf and Greven, which have best-in-class production speed and operational efficiency as well as a highly skilled workforce with a culture aligned with Mondi’s.

Expanding Mondi’s eCommerce offering-particularly in Germany, the largest packaging market in Europe-presents significant opportunities to introduce the Group’s unique range of products to a wider array of customers as they increasingly transition towards more sustainable packaging solutions.

In 2023, Schumacher Packaging’s Western European Packaging Assets delivered an adjusted EBITDA of €66 million.  The EBITDA contribution is expected to increase as the recently added capacity at Greven, following a significant investment programme, ramps up, and the identified €22 million of cost synergies are realised over the three years following completion. This excludes expected one-off cash costs to achieve of approximately €18 million.

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.”

The transaction, which is subject to certain customary regulatory approvals, is expected to close in the first half of 2025.

Mr Bjoern Schumacher and Mr Hendrik Schumacher, co-CEOs of Schumacher Packaging who have been instrumental in the development of the business over many years, will be retained, respectively, as a strategic adviser and as Chief Operating Officer Solid Board. We welcome their continued involvement to ensure a smooth transition and support the ongoing development of the combined business.