Mondi acquires the industrial and consumer bag operations of the Smurfit Kappa Group in western Europe and disposes of its corrugated box plants in the UKPublication Date:
19 April 2010
Mondi Group confirms that it has signed an agreement with the Smurfit Kappa Group for the acquisition of its western European industrial and consumer bag operations, which consist of 4 plants in France, 3 in Spain, and 1 in Italy as well as certain sales offices.
The acquisition is in line with Mondi’s strategy to strengthen its leading market position in industrial and consumer bags in Europe and further increase the forward integration of kraft paper into bags.
Mondi confirms further that it has also signed an agreement with the Smurfit Kappa Group for the sale of all three of Mondi’s corrugated box plants in the UK. The shares in the business will be sold for a consideration of EUR 43m on a cash and debt free basis. The consideration will be satisfied in cash at completion. Proceeds will be utilised to reduce Mondi’s net debt. The business being disposed of had gross assets of EUR 60m as of 31 December, 2009 and profits before tax of EUR 2.0m in the year ended 31 December 2009.
The divestiture concludes a programme of restructuring the Group’s western European corrugated packaging and recycled containerboard portfolio and will enable Mondi to refine its geographical footprint around its core corrugated positions in central Europe and Turkey.
Both deals are conditional on customary completion conditions.
Mondi is an international paper and packaging company, with production operations across 31 countries and revenues of €5.3 billion in 2009. The Group’s key operations are located in western and emerging Europe, Russia and South Africa and employed 31,000 people on average in 2009.
Mondi is fully integrated across the paper and packaging process, from the growing of wood and the manufacture of pulp and paper (including recycled paper), to the conversion of packaging papers into corrugated packaging and industrial bags.
The Group is principally involved in the manufacture of uncoated fine paper (UFP), packaging paper and converted packaging products, as well as speciality products.
Mondi is a dual listed company, with primary listings on the Johannesburg and London stock exchanges under the ticker codes MND (JSE) and MNDI (LSE) respectively. The Group has been recognised for its sustainability performance through its inclusion in the FTSE4Good UK, Europe and Global indices in 2008 and 2009 and the JSE’s Socially Responsible Investment (SRI) Index in 2007, 2008 and 2009.
Last change: 19/04/2010