Mondi to acquire Schumacher packaging assets in $682 million deal, expanding European presence

Omokolade Ajayi -
Key Points
  • Mondi Plc plans to acquire Schumacher Packaging's operations for $682 million, enhancing its position in Western Europe's competitive packaging market.
  • The acquisition supports Mondi's strategy to expand sustainable packaging solutions, particularly in e-commerce and fast-moving consumer goods sectors.
  • With this deal, Mondi aims to boost earnings and achieve projected cost synergies of $24 million over three years.

Mondi Plc, a multinational packaging and paper group linked to South African tycoon Saki Macozoma, has announced its plans to acquire the corrugated converting and solid board operations of Schumacher Packaging, a key player in the European packaging industry.

The deal, valued at $682 million, covers Schumacher’s operations in Germany, the Benelux region, and the UK, positioning Mondi to strengthen its foothold in the competitive Western European packaging market.

The acquisition aligns with Mondi’s broader strategy of expanding its sustainable packaging solutions, particularly in fast-growing sectors such as e-commerce and fast-moving consumer goods (FMCG).

The addition of Schumacher’s assets will increase Mondi’s capacity to produce fiber-based products, offering more sustainable alternatives to plastic packaging. The transaction, which is subject to regulatory approvals, is expected to close in the first half of 2025.

Strategic expansion and sustainable growth

This acquisition includes seven corrugated converting plants, two solid board mills, and four solid board converting facilities, enhancing its capacity in Central and Eastern Europe. Notably, the deal features two advanced mega-box plants in Ebersdorf and Greven, Germany, which will strengthen Mondi’s presence in Europe’s largest packaging market.

Schumacher Packaging’s Western European operations, which posted an adjusted EBITDA of €66 million ($72.3 million) in 2023, are expected to boost Mondi’s earnings. With the expanded capacity in Greven and projected cost synergies of €22 million ($24 million) over three years, Mondi aims to streamline operations and improve efficiency.

Andrew King, CEO of Mondi Group, expressed excitement over the acquisition, stating it would broaden the company’s sustainable packaging offerings while integrating Schumacher Packaging’s leadership and customer base into Mondi’s global operations.

Mondi strengthens presence in packaging market

Established in 1967, Mondi Plc operates across 30 countries with more than 21,000 employees. The company maintains around 100 production sites, primarily in Europe, Russia, North America, and South Africa. Its dual listing on the London and Johannesburg Stock Exchanges reflects its global reach. Saki Macozoma holds a minority 0.00010-percent stake in Mondi.

The recent decision to acquire the corrugated converting and solid board operations of Schumacher Packaging in Germany, Benelux, and the UK, in a $682 million deal which is set to bolster Mondi's footprint in Western Europe’s competitive packaging market, follows its withdrawal from a $6.2 billion bid for DS Smith, a UK-based packaging group.