DS Smith to Divest De Hoop Paper Mill Assets

SEATTLE (Scrap Monster): European packaging leader DS Smith announced its decision to sell De Hoop paper mill in the Netherlands to leading Dutch corrugated packaging supplier De Jong Packaging. The all-cash transaction is valued at around $59 million. The transaction is subject to customary closing conditions and is expected to be completed in Q2 of fiscal 2021-’22.

According to DS Smith, the offloading of the paper mill assets is part of company’s strategy to have a ‘short paper’ position in Northern Europe region. It is another step forward in its efforts to align its internal production with its priorities in light-weight fibre-based packaging solutions. The proceeds from the transaction will be used to party offset investments in packaging capacity during this year as well as the expansion of its Arnstadt, Germany packaging facility.

As per terms of the deal, DS Smith will continue purchases and supplies of small quantities of containerboard and fibre with the mill, so as to ensure a smooth transition.

Ad Smit, CEO, De Jong Packaging Group noted that the company is pleased to have reached the agreement for purchase of the great mill, for which it sees a lot of development potential. The acquisition fits well into the company’s strategy to be a leading integrated packaging company, he added.

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