Consumables
Mondi Group to acquire the industrial bags and kraft paper business of Graphic Packaging International, Inc. in the US
Monday 09. June 2014 - Mondi Group is pleased to announce it has agreed to acquire the bags and kraft paper business ("the Business") of Graphic Packaging International Inc., a wholly owned subsidiary of Graphic Packaging Holding Company, for a total consideration of USD105 million on a debt- and cash-free basis (the "Acquisition").?
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.”?