Monday, January 9, 2023
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Stora Enso has purchased the Netherland-based company De Jong Packaging Group, one of the largest corrugated packaging producers in the Benelux countries. The merger will significantly increase Stora Enso’s market share in the European packaging sector and give the company access to the corrugated packaging markets in the UK, Germany, the Netherlands, and Belgium. With the acquisition, Stora Enso’s Packaging Solutions division’s corrugated packaging capacity would rise by over 1,200 million square metres to more than 2,000 million square metres, including the ongoing expansion projects of De Jong Packaging Group. Sales for the whole of 2022 are anticipated to be around EUR 1 billion for De Jong Packaging Group. Particularly in the areas of fresh produce, e-commerce, and industrial packaging, its product line and geographic reach complement and improve Stora Enso’s offering.
A new platform for growth in Europe
“I am pleased to officially welcome De Jong Packaging Group as part of Stora Enso. This acquisition advances Stora Enso’s strategic direction by accelerating revenue growth and building market share in renewable packaging in Europe,” says Annica Bresky, President and CEO at Stora Enso.
Stora Enso will enter a new chapter of green packaging solutions following the acquisition of De Jong Packaging Group. The De Jong Packaging Group has 16 locations in total in the Netherlands, Belgium, Germany, and the UK, in addition to Stora Enso’s current corrugated plants. The majority of the locations are corrugated converting and packaging wholesale operations, and they have 46 tray erectors, two corrugators, and 16 processing equipment. Each day, they make 2.5 million boxes collectively.
Synergies from the acquisition of De Jong Packaging Group are anticipated to arise from factors like sourcing, containerboard integration, and business potential. With De Jong’s continuing development projects, which are anticipated to be completed by 2025, the corrugated packaging capacity of De Jong Packaging Group and Stora Enso’s Packaging Solutions will be more than 2,000 million m2.
Following regulatory approvals and employee input, the transaction, which had an estimated enterprise value of EUR 1,020 million when it was first announced in September 2022, was finalised today.
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Tags: acquisition, De Jong Packaging Group, europe, Netherland, packaging, Stora Enso, sustainability, wood, wood and panel, woodworking and manufacturing, woodworking event, woodworking industry, woodworking UK
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