04 June 2014
The Business is a leading player in the production and distribution of kraft paper and bags in the United States of America (the “US”). The production base comprises an integrated kraft paper mill located in Pine Bluff Arkansas, with production capacity of 135 thousand tonnes per annum, and nine bags plants across the US. The Business generated unaudited pro forma sales of approximately USD437 million in the twelve months ended 31 March 2014.
Mondi is a leading global supplier of kraft paper and industrial bags, with a network of 36 industrial bags plants in Europe, the Middle East, North Africa, South-East Asia and North America, including four plants in Mexico and the US, and five kraft paper mills in Europe producing over 1 million tonnes per annum.
The consideration payable for the Acquisition will be funded from existing resources available to the Mondi Group. The acquisition is expected to complete towards the end of Q2/early Q3 2014, subject to certain completion conditions, including the approval of the relevant competition authorities.
Commenting on the Acquisition, David Hathorn, Chief Executive of Mondi Group, said: “The combination of the Business with Mondi’s existing network will create a leading bags player in North America and expand the Group’s growing global footprint in this market. We look forward to offering innovative solutions to our enlarged customer base.
I am confident that the synergies expected from the Acquisition, coupled with Mondi’s proven expertise as a leading global kraft paper and industrial bags producer, will ensure that the combined business delivers strongly.”
Mondi is an international packaging and paper Group, employing around 24,000 people in production facilities across 31 countries. In 2013, Mondi had revenues of EUR6.5 billion and a ROCE of 15.3%. The Group's key operations are located in central Europe, Russia, the Americas and South Africa.
The Mondi Group is fully integrated across the packaging and paper value chain - from the management of its own forests and the production of pulp and paper (packaging paper and uncoated fine paper), to the conversion of packaging paper into corrugated packaging, industrial bags, extrusion coatings and release liner. Mondi is also a supplier of innovative consumer packaging solutions, advanced films and hygiene products components.
Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group’s performance, and the responsible approach it takes to good business practice, has been recognised by its inclusion in the FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially Responsible Investment (SRI) Index since 2007.
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi Group' or ‘Mondi’) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.
Sponsor in South Africa: UBS South Africa (Pty) Ltd