Mondi acquires Turkish corrugated packaging company

Cape Town – Paper and packaging product group Mondi said it would acquire Istanbul listed Olmuksan, a Turkish corrugated packaging player for 66 million Euros (about R1.2bn).

Mondi said Tuesday in a JSE regulatory filing it would buy 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.S (Olmuksan), from International Paper.

The enterprise value of the Turkish company, on a 100% basis, would amount to around 88 million Euros.

Olmuksan is a well-established corrugated packaging player in Turkey. Its five plants provide a diverse customer base with sustainable packaging for food, beverage, agriculture and industrial applications.

The company produced 256 000 tons of corrugated packaging in the 12-months to September 30, while revenues came to 150million Euros. Olmuksan reported a 10.13million Euro loss at its last year-end.

Mondi has operated in Turkey for many years and has a strong understanding of the market and its long-term opportunities, said the group.

Andrew King, the CEO of Mondi said the current Turkish footprint included four corrugated packaging plants and a recycled containerboard paper mill, and three flexible packaging sites.

“Leveraging our expertise and experience in this market, with our global virgin and recycled container-board portfolio, we expect significant operational improvements and paper integration upside,” he said.

He said the acquisition was an opportunity to “significantly strengthen our position in the fast-growing Turkish corrugated market and expand our offering in the region.”

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