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.”