Mondi acquires Schumacher Packaging assets to expand European foothold

Mondi is acquiring Schumacher Packaging’s Western Europe packaging assets. The acquisition of the German, Benelux and UK corrugated converting and solid board operations will expand Mondi’s corrugated footprint in Western Europe and add complementary fiber-based products focused on e-commerce and FMCG.

The acquisition includes seven corrugated converting plants, two solid board mills and four solid board converting plants, adding over one billion square meters of capacity once fully operational. 

Among the acquired sites are two “mega-box” plants in Germany, located at Ebersdorf and Greven. These plants are said to have “best-in-class” production speed and operational efficiency and highly skilled workforce with a culture aligned with Mondi’s. 

Andrew King, Mondi Group’s 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 fiber-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.”

Schumacher Packaging’s Jetliner at its Greven site. Transaction to close next year
Operating in the largest packaging market in Europe — Germany — enables Mondi to introduce the group’s range of products to a wider array of customers transitioning toward more sustainable packaging solutions.

In 2023, Schumacher Packaging’s Western European Packaging Assets delivered an adjusted EBITDA of €66 million (US$72 million). The EBITDA contribution is expected to increase as the recently added capacity at Greven, following an investment program, ramps up and the identified €22 million (US$24 million) of cost synergies are realized over the three years following completion. 

This excludes expected one-off cash costs to achieve approximately €18 million (US$20 million).

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

Bjoern and Hendrik Schumacher, co-CEOs of Schumacher Packaging, will be retained, respectively, as a strategic adviser and as chief operating officer for Solid Board. 

Mondi says the announcement is in line with the company’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.

“We welcome their continued involvement to ensure a smooth transition and support the ongoing development of the combined business,” says King.

Mondi will publish its third quarter trading update as planned on October 17.