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Sonoco to Acquire Danish Paper Maker Skjern Paper for DKK 675m in Cash
Thursday 29 September 2022

US-based packaging company Sonoco (NYSE: SON) has entered into a definitive agreement to acquire Danish paper maker S.P. Holding, Skjern A/S, the company said.

The acquisition expands production capacity for customers and Sonoco converting operations throughout Europe and bordering regions.

The estimated USD 88m (DKK 675m) all-cash transaction has been unanimously approved by Sonoco's board of directors and is expected to be completed in 4Q22, subject to customary closing conditions.

Founded in 1965, Skjern is a 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 USD 50m and the transaction is expected to be immediately accretive to both earnings per share and cash flow.

Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer and industrial packaging and products.
Date Published: 29/09/2022