Business News

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 UK

Friday 23. 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.