REG-Mondi Plc: Mondi to acquire Western Europe Packaging Assets of Schumacher Packaging

MondiAnnouncement

09/10/2024 07:15

Mondi plc

 

(Incorporated in England and Wales)

(Registered number: 6209386)

LEI: 213800LOZA69QFDC9N34

LSE share code: MNDI

JSE share code: MNP ISIN: GB00BMWC6P49

 

Mondi to acquire Western Europe Packaging Assets of 

Schumacher Packaging
* Strengthens Mondi's corrugated converting footprint in Europe with highly
complementary assets, increasing capacity by over 1 billion square meters 
* Provides integration benefits with the Group's leading containerboard
operations in Europe
* Includes two state-of-the-art mega-box plants in Germany, located at
Ebersdorf and Greven, securing significant capacity to meet the growing demand
for sustainable packaging
* Enterprise value of €634 million, to be financed from existing
facilities.  Earnings per share accretive in the first full financial year
following completion
Mondi plc ("Mondi" or the "Group"), a global leader in the production of
sustainable packaging and paper, today announces that it has entered into an
agreement to acquire the German, Benelux and UK corrugated converting and
solid board operations of Schumacher Packaging1("the Acquisition").  This
Acquisition will expand Mondi's corrugated footprint in Western Europe and add
complementary fibre-based products, focused on eCommerce and FMCG, to enhance
its existing customer offering.

Today's announcement is in line with Mondi'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 to
ensure security of supply for customers and optimised operations, and to
continue to partner with customers to deliver innovative solutions. 

The Acquisition comprises seven corrugated converting plants, two solid board
mills and four solid board converting plants. These operations complement
Mondi's existing network of corrugated plants across Central and Eastern
Europe, adding over 1 billion square meters of capacity when fully
operational.  Among the acquired sites are two state-of-the-art mega-box
plants in Germany, located at Ebersdorf and Greven, which have best-in-class
production speed and operational efficiency as well as a highly skilled
workforce with a culture aligned with Mondi's. 

 

Expanding Mondi's eCommerce offering-particularly in Germany, the largest
packaging market in Europe-presents significant opportunities to introduce the
Group's unique range of products to a wider array of customers as they
increasingly transition towards more sustainable packaging solutions. 

In 2023, Schumacher Packaging's Western European Packaging Assets delivered an
adjusted EBITDA of €66 million.  The EBITDA contribution is expected to
increase as the recently added capacity at Greven, following a significant
investment programme, ramps up, and the identified €22 million of cost
synergies are realised over the three years following completion. This
excludes expected one-off cash costs to achieve of approximately €18
million.

Commenting on the Acquisition, Andrew King, Mondi Group CEO, said:

 

"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 fibre-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."

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

 

Mr Bjoern Schumacher and Mr Hendrik Schumacher, co-CEOs of Schumacher
Packaging who have been instrumental in the development of the business over
many years, will be retained, respectively, as a strategic adviser and as
Chief Operating Officer Solid Board. We welcome their continued involvement to
ensure a smooth transition and support the ongoing development of the combined
business.

 

Mondi will publish its third quarter trading update as planned, on Thursday 17
October 2024 at 0700 hours London (0800 hours Johannesburg).

 

-          END -

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1. Corrugated converting sites include Bielefeld, Ebersdorf, Greven, Lehrte,
Sonneberg, in Germany, Breda in the Netherlands and Birmingham in the UK
Solid Board mills at Kaierde and Schwarzenberg with conversion sites at
Hauenstein, Forchheim, Schwarzenberg and Leipzig-Land (all Germany)

 

Conference call for analysts and investors to discuss the Acquisition

A webinar will be held today at 08:30 (BST), 09:30 (CET/SAST).

Event registration link:
https://storm-virtual-uk.zoom.us/webinar/register/WN_Pr1NzHyAT0G7Z5VK3Q3fEw

Once registered, you will receive a confirmation email from `MONDI GROUP
Events' with the webinar link and ID. 

A replay will be available on Mondi's website within a couple hours after the
end of the live results presentation at:
https://www.mondigroup.com/investors/results-reports-and-presentations/

For any queries, please e-mail ir@mondigroup.com.

Enquiries

Investors/analysts:

Fiona Lawrence                    +44 742 587 8683

Mondi Group: Head of Investor Relations  

 

Media: 

Chris Gurney       +44 799 004 3764

Mondi Group: Head of Corporate Communication

 

Richard Mountain                   +44 790 968 4466

FTI Consulting

Editors' notes

Mondi is a global leader in packaging and paper, contributing to a better
world by producing products that are sustainable by design. We employ 22,000
people in more than 30 countries and operate an integrated business with
expertise spanning the entire value chain, enabling us to offer our customers
a broad range of innovative solutions for consumer and industrial end-use
applications. Sustainability is at the centre of our strategy, with our
ambitious commitments to 2030 focused on circular driven solutions, created by
empowered people, taking action on climate.

In 2023, Mondi had revenues of €7.3 billion and underlying EBITDA of €1.2
billion. Mondi is listed on the London Stock Exchange in the ESCC category
(MNDI), where the Group is a FTSE100 constituent. It also has a secondary
listing on the JSE Limited (MNP).

mondigroup.com

Sponsor in South Africa: Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities.

 

 



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