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
-
-------------------------------------------------------------------------------------
-
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.