Stora Enso makes corrugated packaging acquisition

Stora Enso says it has acquired Netherlands-based De Jong Packaging Group for a price tag of 1.02 billion euros ($1.04 billion). Stora Enso, based in Finland, describes De Jong as “is one of the largest corrugated packaging producers in the Benelux countries.”

Founded in 1996, De Jong Packaging makes corrugated trays and boxes with a focus for fresh produce, e-commerce and industry. The company has owned a containerboard mill since its acquisition of the De Hoop paper mill in the Netherlands last year. De Jong Packaging Group has 17 downstream sites in the Netherlands, Belgium, Germany and the United Kingdom.

Stora Enso says the move will “advance [its] strategic direction, accelerate revenue growth and build market share in renewable packaging in Europe. De Jong Packaging Group Its product portfolio and geographic presence will complement and enhance Stora Enso’s offering, especially in fresh produce, e-commerce and industrial packaging.”

With the acquisition, the Stora Enso Packaging Solutions division will “secure a platform for continued growth in key markets,” the firm says, adding that it considers the European corrugated packaging market as fragmented, with local presences key for sustainable growth.

If Stora Enso decides to proceed with the conversion of the Langerbrugge paper production site in Belgium to containerboard, which it is studying, “further synergies will be possible,” the firm says.

“In line with our strategy, we are investing in growing our market share in renewable and circular packaging solutions,” Stora Enso President and CEO Annica Bresky says. “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.”

David Ekberg, executive vice president of the Packaging Solutions Division at Stora Enso, says, “De Jong Packaging Group has a solid track record of growth in corrugated packaging, which combined with our experience in innovative design, digital solutions and sustainability services, will enable us to strengthen our offering.”

Henk de Jong, owner of De Jong Packaging Group and Ad Smit, CEO of De Jong Packaging Group, says, “We are proud of what has been achieved at De Jong Packaging Group and we now look forward to the next steps in our company’s journey. Stora Enso is well positioned to drive further growth in line with our common ambition.”

The acquisition of De Jong Packaging Group has been approved by Stora Enso’s board of directors. Stifel, Allen & Overy, and KPMG acted as Stora Enso’s advisors in the transaction, the firm says.