Stora Enso in €1bn corrugated buy
Thursday, September 8, 2022
Stora Enso has boosted its corrugated packaging offering with a €1bn-plus deal to acquire De Jong Packaging Group.
De Jong Packaging is based in the Netherlands and is expected to have sales of around €1bn this year (£867m). It employs approximately 1,300 people.
The deal will involve a big increase in capacity at Stora Enso’s Packaging Solutions business by around 1.2bn sqm, taking it up to more than 2bn sqm.
Stora Enso said it would also strengthen its presence in key markets on the continent as well as the UK.
The group also highlighted the potential synergies if it decides to go ahead with the conversion of a paper machine at its Langerbrugge site in Belgium from newsprint to containerboard.
CEO Annica Bresky said that the acquisition supported the group’s future strategic direction to grow renewable packaging solutions within Europe.
“In line with our strategy, we are investing in growing our market share in renewable and circular packaging solutions. De Jong Packaging has a solid presence in the corrugated packaging sector and an impressive customer base,” she said.
The total value of the deal is around €1.02bn and there is a potential additional earnout payment of €45m in cash if De Jong Packaging achieves certain performance targets by 2024.
De Jong Packaging was founded in 1996 by market gardener Henk De Jong, who needed packaging for his own business.
It has grown into one of the biggest corrugated packaging producers in Benelux. It produces corrugated trays and boxes for e-commerce, fresh produce, and industrial use. It acquired the De Hoop paper mill in 2021 and has 17 sites across the Netherlands, Belgium, Germany and the UK.
The firm has been active in the UK since 2015.
Stora Enso had sales of €10.2bn last year.
Paper is no longer a strategic growth area for the group, which has opted to either convert or dispose of most of its paper mills.
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