Mondi plant in Richards Bay. The acquisition of the Western Europe packaging assets of Schumacher Packaging will significantly expand Mondi's footprint, enhance its customer offering and create a strong platform for further growth,
Image: Simphiwe Mbokazi
Mondi, the London and Johannesburg-listed global packaging and paper solutions group, said Tuesday it has completed the €634 million (R12.5 billion) acquisition of the Western Europe packaging assets of Schumacher Packaging.
The transaction will expand Mondi's footprint, enhance its customer offering, and create a strong platform for further growth, the group said in a statement.
Mondi's network of corrugated solutions plants across Central and Eastern Europe would be complemented by the acquired corrugated converting and solid board operations in Germany, Benelux, and the UK, and this would add over 1 billion square meters of capacity when fully operational.
This includes two mega box plants located at Ebersdorf and Greven (Germany), which have best-in-class production speed and operational efficiency and offer growth potential following a recent investment program.
"This acquisition significantly strengthens our corrugated packaging business, extending our footprint in Western Europe and offering strong vertical integration opportunities,” said Mondi CEO Andrew King in a statement.
"Together we will expand our eCommerce and FMCG (fast-moving consumer goods) offering, particularly in Western Europe, presenting exciting 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," said King.
Mondi’s share price increased by 1.1% to R275.19 on the JSE Tuesday afternoon, a price nonetheless well shy of R329.10 a year before.
Mondi Chairman Philip Yea said in the annual reportlast month that Mondi had performed resiliently in 2024 despite the somewhat soft demand and challenging pricing environment. Underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) at €1.05 billion was 13% below the previous year.
Looking to the new financial year, Yea said he was confident that key differentiators such as their sustainable assets, scale, and staff would support long-term growth, strong cash generation, attractive returns, and sustainable value for shareholders.
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