Mondi snaps up Schumacher Packaging assets in Western Europe

9th Oct 2024 07:16

(Sharecast News) - Paper and packaging giant Mondi has announced the acquisition of the Western European corrugated converting and solid board assets of Schumacher Packaging.

The Weybridge-based manufacturer said the deal will expand its corrugated footprint in key markets and add complementary fibre-based products focused on ecommerce and FMCG to enhance its existing offering.

Mondi will take over seven seven corrugated converting plants, two solid board mills and four solid board converting plants across Germany, the UK and the Benelux region, adding more than 1bn square meters of capacity when fully operations.

Including in the acquisition 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".

The assets, purchased for an undisclosed sum, generated €66m in adjusted EBITDA in 2023, though this is expected to increase due to recently added capacity at the Greven plant, along with cost synergies identified through the takeover.

"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," said Mondi's chief executive Andrew King.