EUROPE (From news reports) -- Mondi PLC said on Wednesday it has agreed to acquire packaging assets of Schumacher Packaging GmbH for an enterprise value of EUR634 million, expanding its corrugated footprint in Western Europe.

The Weybridge, England-based packaging firm will buy the German, Benelux and UK corrugated converting and solid board operations of Schumacher Packaging. Benelux refers to Belgium, the Netherlands, and Luxembourg.

The deal is for an enterprise value of EUR634 million, which will be financed from Mondi's existing facilities.

Mondi said these operations complement its existing network of corrugated plants across Central and Eastern Europe. The acquisition comprises seven corrugated converting plants, two solid board mills and four solid board converting plants.

This acquisition, it said, will expand its corrugated footprint in Western Europe and add complementary fibre-based products.

Mondi expects the transaction, which is subject to regulatory approvals, to close in the first half of 2025.

Bjoern Schumacher and Hendrik Schumacher, co-chief executive officers of Schumacher Packaging, will be retained, strategic adviser and chief operating officer Solid Board, respectively.

In 2023, Schumacher Packaging's Western European packaging assets delivered adjusted earnings before interest, taxes, depreciation and amortisation of EUR66 million.

The Ebitda contribution is expected to increase as the recently added capacity at Greven, following a significant investment programme, ramps up, and the identified EUR22 million of cost synergies are realised over the three years following completion.

This excludes expected one-off cash costs to achieve of about EUR18 million, Mondi said.

Mondi said the proposed deal is in line with its strategy to expand its corrugated packaging business in Europe and adjacent markets.

"This acquisition significantly increases our corrugated converting capacity, extends our reach across Western Europe, and offers strong downstream integration opportunities, while broadening our customer offering with a complementary fibre-based product range," Mondi Chief Executive Officer Andrew King said.