Mondi 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 presence in Western Europe and add complementary fibre-based products to its existing customer offering, with a focus on e-commerce and FMCG This move is in line with Mondi's strategy of growing its corrugated business in Europe and adjacent markets. The company is investing in lower-cost assets. These include further integrated operations upstream and downstream to ensure security of supply for customers and optimise operations. The transaction, which is subject to certain customary regulatory approvals, is expected to close in the first half of 2025.
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. They adding over one 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. Both have best-in-class production speed and operational efficiency as well as highly skilled workforce with a culture aligned with Mondi’s.
Mondi expands eCommerce activities in Germany
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.
Growing market demand for sustainable packaging
Commenting on the acquisition, Andrew King, Mondi Group CEO, says: “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.”
Former Schumacher management stays on board
Bjoern Schumacher and 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.
