DLA Piper advises Sonoco on its acquisition of Skjern Paper

Sonoco (NYSE: SON), a diversified global packaging leader, announced on 28 September 2022 that it had entered into a definitive agreement to acquire Skjern Paper A/S, a Danish manufacturer of specialized recycle paper.

The acquisition expands production capacity for customers and Sonoco converting operations throughout Europe and bordering regions. The estimated USD 88 million (DKK 675 million) 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 Paper is a leading producer of high-grade paperboard from 100% recycled paper for rigid paper containers, tubes and cores, and other applications with an annual production of 75,000 tonnes of paper and board produced from 100% recycled paper from the Nordic countries. 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 Paper is expected to achieve annual sales of USD 50 million and the transaction is expected to be immediately accretive to both earnings per share and cash flow.

Read the press release here.

Sonoco was represented by DLA Piper Denmark led by Jens Krogh Petersen and Christoffer Tolstrup.