UK's Mondi bets on Western Europe with $695 mln deal for Schumacher Packaging's assets
09/10/2024 07:43
Oct 9 (Reuters) - British paper and packaging firm Mondi
MNDI.L has agreed to buy the German, Benelux and UK packaging
assets of Schumacher Packaging for 634 million euros ($695.6
million), including debt, to expand in Western Europe, it said
on Wednesday.
WHY IT'S IMPORTANT
There has been increasing consolidation in the paper and
packaging sector as companies recover from a decline in demand
due to customer destocking following a boom in packaging sales
during the pandemic.
Firms such as Mondi are looking to expand their
footprint in Europe. Earlier this year, it dropped out of a
takeover bid for rival DS Smith SMDS.L after U.S. peer
International Paper Co IP.N outbid it.
Ireland's Smurfit Kappa SKG.I has also agreed to buy U.S.
rival WestRock WRK.N .
KEY QUOTES
"This acquisition significantly increases our corrugated
converting capacity, extends our reach across Western Europe,
and offers strong downstream integration opportunities," Mondi
CEO Andrew King said in a statement.
WHAT'S NEXT?
Mondi said the deal is expected to add to its earnings in
the first full year after the deal close, which expected in the
first-half of 2025.
The London-listed firm will report its third-quarter trading
update on Oct. 17, as planned, it said.
($1 = 0.9114 euros)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sonia
Cheema)
((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))