Mondi PLC in for more helpings of Turkey with new acquistion
A network of five plants will be added to the existing four corrugated packaging plants, a recycled containerboard paper mill and three flexible packaging sites in the country
() has struck a deal to buy Turkish corrugated packaging company Olmuksan from International Paper Co () for €66mln.
The Anglo-South African group has agreed to acquire 90.38% of the outstanding shares in the Istanbul-listed business and, following completion, plans to launch a mandatory tender offer to acquire the remaining 9.62% held by minority shareholders.
Olmuksan generated revenues of 1.1bn Turkish lira (€150mn) in the 12 months to end-September 2020 from producing 256,000 tonnes of packaging for a customer base across food, beverage, agriculture and industrial sectors.
Its network of five plants will add to Mondi’s four corrugated packaging plants, a recycled containerboard paper mill and three flexible packaging sites in the country.
The FTSE 100-listed group said it has “operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities”, so expects to generate “significant operational improvements and paper integration upside” from the deal.
Competition clearance and other conditions are needed to close the deal, which all going smoothly is expected to complete in the first half of 2021.
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