Sonoco announced it has entered into a definitive agreement to acquire S.P. Holding, Skjern A/S, a privately owned manufacturer of paper based in Skjern, Denmark. The acquisition expands production capacity for customers and Sonoco converting operations throughout Europe and bordering regions. The estimated $88 million (675 million DKK) all-cash transaction has been unanimously approved by Sonoco’s Board of Directors and is expected to be completed in the fourth quarter of 2022, subject to customary closing conditions. Founded in 1965, Skjern is a leading producer of high-grade paperboard from 100% recycled paper for rigid paper containers, tubes and cores, and other applications. The company has robust sustainability programs in place for renewable energy and CO2 emission reduction and operations are powered by a biomass boiler, which reduces reliance on natural gas. In 2022, Skjern is expected to achieve annual sales of $50 million and the transaction is expected to be immediately accretive to both earnings per share and cash flow.
The Mayr-Melnhof Group is strengthening the Neupack folding box production at the Hirschwang site in Austria with an extensive future-oriented program. An investment plan of EUR 18 million in buildings and machines is intended to significantly increase the international competitiveness of the location in the growth markets of e-commerce packaging and high-quality printed consumer goods packaging in ultra-fine wave (microwave) for products such as food, pet food and electrical household appliances.
In addition to the construction of an enlarged production and warehouse hall, investments are made in new printing technology, punching capacities as well as state-of-the-art automation and infrastructure. The aim is to lead Neupack Hirschwang into the future with bundled forces and an attractive range of products with good earnings. This makes the folding box factory a sustainable employer in the region with currently 215 employees.