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Highlights:
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Mondi PLC has acquired the German, UK, and Benelux operations of Schumacher for €634 million (£531 million).
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The acquisition is expected to enhance Mondi’s customer offerings in e-commerce and fast-moving consumer goods (FMCG).
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Anticipated cost synergies and production expansions are projected to boost adjusted EBITDA significantly over the next three years.
Mondi PLC {LSE:MNDI}, a leading packaging company headquartered in South Africa, has announced the acquisition of the German, UK, and Benelux business of cardboard box manufacturer Schumacher for €634 million (£531 million). The company plans to fund this transaction through its existing bank facilities, with an expectation that it will enhance earnings per share in the first full financial year following the completion of the deal. The acquisition is anticipated to close in the first half of 2025, pending regulatory approval.
The Schumacher businesses focus on e-commerce and fast-moving consumer goods (FMCG), sectors that are poised for growth as consumer demand for efficient and sustainable packaging continues to rise. By integrating Schumacher’s operations, Mondi aims to bolster its corrugated packaging footprint in Western Europe and strengthen its existing customer offerings.
Last year, the acquired businesses reported an adjusted EBITDA of €66 million, a figure that Mondi expects to grow due to recent production expansions and the identification of €22 million in cost synergies over the next three years. The transaction will also increase box-making capacity by over one billion square meters, facilitated by the addition of seven corrugated converting plants, two solid board mills, and four solid board converting plants. Among these are two state-of-the-art "mega-box plants" located in Germany, designed to significantly enhance capacity to meet the rising demand for sustainable packaging solutions.
Germany, being the largest packaging market in Europe, presents considerable opportunities for Mondi. The addition of this capacity positions the group to introduce its unique range of products to a broader customer base as the market shifts toward more sustainable packaging options.
