Mondi expands with strategic acquisition in Western Europe

The British paper and packaging group Mondi has reached an agreement to acquire the packaging operations of Schumacher Packaging in Germany, Benelux, and the United Kingdom for 634 million euros, including debt. With this significant step, Mondi aims to expand its presence in Western Europe and significantly enhance its market competitiveness. In the paper and packaging industry, acquisitions and mergers are currently on the rise as companies seek to recover from a decline in demand, triggered by inventory reductions by customers following the post-pandemic boom. Mondi aims to further advance its expansion strategy in Europe. Despite a failed attempt to acquire competitor DS Smith earlier this year, Mondi has now taken an important step with the acquisition of Schumacher Packaging. Other companies, such as Smurfit Kappa, are also joining the consolidation trend and announcing acquisition projects, such as with the US company WestRock. Mondi CEO Andrew King emphasizes the importance of this acquisition: "This acquisition significantly enhances our corrugated processing capacity, extends our reach in Western Europe, and opens up strong integration opportunities across the entire value chain." Mondi expects financial gains as early as the first full year after the transaction is completed, which is expected in the first half of 2025. The company, which remains listed on the London Stock Exchange, plans to release its third-quarter report on October 17.