SCA expands in premium packaging

SCA, the Sweden-based packaging provider, has acquired the German, family-owned packaging company V+D Stabernack for €131 million.

The acquisition is part of the strategy to develop a European network for the production of high-value packaging products with advanced printing, mainly aimed at the food and beverage industry.

In addition to packaging products, Stabernack manufactures display products, such as point-of-sale displays of corrugated board and other products for displaying customers' products in stores. For the production of these products, Stabernack has at printing equipment for both preprint (pre-printed surface materials for packaging), as well as offset printing. Existing customers include Henkel, Kraft and Nestle.

Stabernack has four integrated corrugated box plants in Germany, as well as an additional six independent conversion and service units in Germany, the Netherlands, the Czech Republic and Poland, some of which are completely focused on the design and manufacture of point-of-sale displays. Sales in 2001 amounted to €167million, with some 1,350 employees, of whom 5 per cent work entirely with product design.

The acquisition primarily supplements the corresponding operations that SCA conducts in France through SCA Nicollet and in several other European units and is intended to strengthen SCA's network of units that can serve the rapidly growing need throughout Europe for premium packaging with advanced printing. Through the acquisition of Stabernack SCA will also be able to further increase its liner integration.

The acquisition is subject to the approval of the relevant competition authorities and is expected to be included in SCA's consolidated accounts as of September 2002.