For an amount of approximately 1âeuros020 million euros, one of the largest producers of corrugated board packaging in the Benelux, De Jong Packaging, is being taken over by the giant Stora Enso.
Founded in 1996 and based in the Netherlands, De Jong Packaging specializes in trays and corrugated cartons mainly for fresh produce, e-commerce and industry. The Dutch company operates 17 sites in the Netherlands, Belgium, Germany and the UK and employs 1,300 people.
De Jong Packaging is expected to post approximately EUR 1 billion in sales and EUR 114 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the year 2022. EBITDA is expected to increase by EUR 40 million in 2025 with the completion of the current expansion projects.
Production capacity for corrugated packaging almost doubled
With this acquisition, Finnish-Swedish Stora Enso's corrugated packaging capacity will increase from 1.2 billion to more than 2 billion square meters 2 . And De Jong Packaging Group's product portfolio will complement Stora Enso's offering, including fresh food, e-commerce and industrial packaging.
"The acquisition of De Jong Packaging Group will significantly strengthen Stora Enso's presence in the European corrugated packaging market and allow it to enter the Netherlands, Belgium, Germany and the UK." says the future owner of the Dutch company.
"In line with our strategy, we are investing in growing our market share in renewable and circular packaging solutions, says Annica Bresky, President and CEO of Stora Enso. De Jong Packaging has a strong presence in the corrugated packaging industry and an impressive customer base. The acquisition of their business supports our future strategic direction to advance renewable packaging solutions in Europe."
At least 30 million euros in savings expected
Within the next three years, the group, which had revenues of 10.2 billion euros in 2021, expects to achieve cost reductions of 30 million euros per year thanks to synergies mainly in sourcing, optimization of carton integration and commercial opportunities.
And if Stora Enso converts its last newsprint production site in addition, the conversion of the Belgian plant in Langerbrugge into a cardboard factory should create new synergies.
Stora Enso could, in 2024, pay a maximum cash earn-out of EUR 45 million, subject to De Jong Packaging Group reaching certain profit thresholds.
Subject to employee approval and various regulations, the transaction is expected to be finalized early next year 2023.
