Sonoco Reached Agreement to Acquire Denmark Paper Manufacturer

SEATTLE (Scrap Monster): Global packaging leader, Sonoco, announced that it has entered into a definitive agreement to acquire the assets of Skjern, Denmark-based paper manufacturer, S.P. Holding, Skjern A/S.

The press release noted that the all-cash transaction amounting to approximately $88 million has been approved by the company’s Board of Directors. The deal is expected to be completed by Q4 this year, subject to customary closing conditions and necessary regulatory approvals. It is expected to be immediately accretive to both earnings per share and cash flow.

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The acquisition will help Sonoco to expand its production capacity significantly and provide further boost to its converting operations throughout Europe and adjoining regions.

Commenting on the transaction, Howard Coker, President and CEO, Sonoco noted that the acquisition is in line with its strategy to invest in core businesses while capitalizing on the growing market for sustainable paper and packaging products in Europe. Skjern’s reputation for high quality output from efficient and low emission operations aligns well with the company’s overall commitment to a circular economy and organic growth. Furthermore, he welcomed the entire Skjern team to the Sonoco family.