Established in 1996, De Jong Packaging Group is a corrugated packaging producer for fresh produce, e-commerce and industrial packaging sector

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A fluting factory of Stora Enso in Heinola, Finland. (Credit: ComradeUranium from Wikipedia)

Pulp and paper company Stora Enso has agreed to acquire the Netherlands-based De Jong Packaging Group for an enterprise value of about €1.02bn.

The deal is intended to advance Stora Enso’s strategic direction, speed up revenue development and increase market share for sustainable packaging in Europe.

Established in 1996, De Jong Packaging Group is a corrugated packaging producer for fresh produce, e-commerce and industrial packaging sector of Benelux nations.

With approximately 1,300 people, the company has 17 sites in the Netherlands, Belgium, Germany and the UK.

Stora Enso said that De Jong’s geographic reach and product range will supplement and improve its portfolio and European market presence.

With this acquisition, Stora Enso’s Packaging Solutions division will be to enhance its corrugated packaging capacity by about 1,200 million m², bringing its total capacity to more than 2,000 million m².

Stora Enso’s Packaging Solutions division will also accommodate De Jong’s ongoing expansion projects.

This will provide a solid foundation for further growth in important markets of the Netherlands, Belgium, Germany, and the UK.

Stora Enso president and CEO Annica Bresky said: “In line with our strategy, we are investing in growing 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.

“Acquiring their operations supports our future strategic direction to advance renewable packaging solutions within Europe.”

When the ongoing package converting expansion projects are scaled up in 2025, an additional EBITDA of €40m is anticipated to be provided.

The acquisition is anticipated to produce average annual synergies of €30m primarily through sourcing, containerboard integration optimisation, and business prospects.

Additional synergies will be available if Stora Enso decides to move forward with the currently under consideration conversion of the Langerbrugge paper production site in Belgium to containerboard.

The acquisition is anticipated to close at the beginning of 2023, pending regulatory approval and employee consultation.