NETHERLANDS – Finnish forestry group Stora Enso has completed the acquisition of Dutch packaging company De Jong for an enterprise value of US$1.02 billion which includes 250 million in lease liabilities.

The acquisition of De Jong Packaging Group will significantly strengthen Stora Enso’s European market presence in corrugated packaging and provide an entry into the Netherlands, Belgium, Germany and the UK.

The acquisition has been financed through existing liquidity and bilateral loan arrangements. It has also been approved by Stora Enso’s Board of Directors, with Stifel, Allen & Overy, and KPMG acting as Stora Enso’s advisors in this transaction.

With this acquisition, Stora Enso’s Packaging Solutions division will increase its corrugated packaging capacity by approximately 1.2 billion m2 to more than 2 billion m2, including De Jong Packaging Group’s ongoing expansion projects.

With expansion expected to intensify in 2025, this year’s EBITDA of US$114 million is predicted to increase by US$40 million; the maximum additional earn-out payment in 2024 is anticipated to reach US$45 million.

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

“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.”

Meanwhile, De Jong Packaging Group’s full year 2022 sales is estimated at approximately EUR 1 billion. The acquisition is expected to be EPS accretive from the first year.

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,” stated Henk de Jong, owner of De Jong Packaging Group and Ad Smit, CEO of De Jong Packaging Group.

The company previously divested its three corrugation packaging plants in Russia due to market uncertainties and halted all imports, exports, production, and sales in light of the war in Ukraine.

Stora Enso said that, due to the uncertainties in the Russian market, local ownership and operation of the three plants would be more sustainable in the long term for the businesses and their employees.

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