Sonoco expands European operations, acquires Skjern Paper

Sonoco, a Hartsville, South Carolina-based packaging producer, has announced the acquisition of Skjern Paper, a paperboard manufacturer based in Denmark, expanding its production capacity and converting operations in Europe.

The companies say the deal is for $88 million and is expected to be complete in the fourth quarter of this year after being unanimously approved by Sonoco’s board of directors.

“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,” Sonoco President and CEO Howard Coker says. “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.”

Skjern was founded in 1965 as a high-grade paperboard producer using 100-percent-recycled paper to manufacture coreboard, greyliner and blueliner, greyboard and sheets. The company says the majority of its products end up as cardboard cores in toilet rolls and kitchen towels, composite cans, cardboard in binders, solid board boxes, gift wrap paper rolls or sheet interlayers for pallet goods, and annual production capacity is 75,000 metric tons per year.

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The company also has what it calls “robust sustainability programs” in place for renewable energy and CO₂ emission reduction, and its operations are powered by a biomass boiler, reducing reliance on natural gas.

Skjern is expected to reach annual sales of $50 million this year, company officials say.

“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,” Coker says.