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Stora Enso has acquired the Dutch company De Jong Packaging Group in order to expand its market share in the field of renewable packaging in Europe. In particular, the company wants to expand the area of renewable corrugated cardboard packaging.
The De Jong Packaging Group is one of the largest manufacturers of corrugated packaging in the Benelux. Its product portfolio and geographical presence will expand the range of Stora Enso and expand, especially in the fresh produce, e-commerce and industrial packaging sectors.
The acquisition of the De Jong Packaging Group will strengthen the European Strengthening Stora Enso's market presence in corrugated packaging and enabling entry into the Netherlands, Belgium, Germany and the UK. With this acquisition, Stora Enso's Packaging Solutions division will increase its corrugated packaging capacity by approximately 1,200 million square metres to more than 2,000 million square metres, including the ongoing expansion projects of the De Jong Packaging Group. This will create a platform for further growth in key markets.
The enterprise value of the transaction amounts to around EUR 1,020 million, of which EUR 250 million is attributable to IFRS lease liabilities. The enterprise value corresponds to a multiple of 8.9, based on an adjusted EBITDA of EUR 114 million for 2022. An additional EBITDA of EUR 40 million is expected in 2025, when the ongoing expansion projects in the area of packaging processing are ramped up.
„In line with our strategy, we are investing in expanding 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. The acquisition of the company supports our future strategic direction to drive renewable packaging solutions in Europe.“
Annica BreskyPresident and CEO of Stora Enso
The turnover of the De Jong Packaging Group is estimated at around EUR 1 billion for the full year 2022. The acquisition is expected to have a positive impact on earnings from the first year onwards. The acquisition will be financed through existing liquidity and bilateral credit agreements. Stora Enso's net debt to operating EBITDA ratio will increase from 0.4 to 1.4. The Transaction expected to be finalised in early 2023, subject to employee consultation and the approval of the supervisory authorities.
„We are very excited about this acquisition. With our shared focus on agility and customer value and the excellent teams in both companies, we will create a strong platform for future growth. De Jong Packaging Group has a solid history of growth in corrugated packaging which, combined with our expertise in innovative design, digital solutions and sustainability services, will enable us to strengthen our offering.“
David Ekberg, EVP Packaging Solutions Division at Stora Enso
Source: Stora Enso
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