Finnish pulp and paper manufacturer Stora Enso has acquired Netherlands-based packaging company De Jong Packaging Group for around €1.02bn ($1.02bn).

De Jong Packaging supplies corrugated trays and boxes for fresh produce, e-commerce and industrial applications.

The company operates 17 sites in the Netherlands, Belgium, Germany and the UK. It expects to record full-year sales of around €1bn for fiscal 2022 (FY22).

Stora Enso said De Jong Packaging will enhance its strategy to expedite revenue growth and strengthen its presence in the European corrugated packaging market.

In addition, the deal will increase the corrugated packaging capacity of Stora Enso’s Packaging Solutions division by approximately 1.2 billion square metres.

Stora Enso president and CEO Annica Bresky said: “In line with our strategy, we are investing in growing our market share in renewable and circular packaging solutions.

“De Jong Packaging has a solid presence in the corrugated packaging sector and an impressive customer base.

“Acquiring their operations supports our future strategic direction to advance renewable packaging solutions within Europe.”

Stora Enso will fund the transaction through existing liquidity and bilateral loan arrangements.

The company’s Board of Directors has already approved the deal, which is now subject to employee consultation and regulatory approval.

De Jong Packaging Group owner Henk de Jong and CEO Ad Smit said: “We are proud of what has been achieved at De Jong Packaging Group and we now look forward to the next steps in our company’s journey.

“Stora Enso is well-positioned to drive further growth in line with our common ambition.”

The transaction is expected to close at the beginning of next year.

Stifel, Allen & Overy and KPMG served as advisors to Stora Enso for the deal.

Earlier this year, Stora Enso reported an 18% growth in sales to €3.05bn for the second quarter of FY22.