Sonoco has announced it has entered into a definitive agreement to acquire Skjern Paper 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 increase both earnings per share and cash flow.
«This acquisition builds on Sonoco’s previously articulated strategy to invest in our core businesses while capitalizing on the growing market for sustainable paper and packaging products in Europe,» says Howard Coker, Sonoco’s president and CEO. «Skjern has a strong reputation for high quality output from efficient and low emission operations, which aligns well with Sonoco’s overall commitment to a circular economy and the reduction of greenhouse gases. With this acquisition, Sonoco is better positioned to be a trusted provider to new and existing customers and to further accelerate organic growth in Europe. We warmly welcome the Skjern team to the Sonoco family».