Packaging firm Mondi has agreed to acquire a 90.38% stake in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.Ş from International Paper for a total consideration of €66 million.
The implied enterprise value on a 100% basis would amount to around €88 million, the company said.
Olmuksan is one of the leading corrugated packaging players in Turkey, listed on the Istanbul stock exchange.
It operates a network of five plants catering to a diverse customer base with high-quality, sustainable packaging for food, beverage, agriculture and industrial applications.
'Unique Opportunity'
Andrew King, group chief executive officer of Mondi, said, “We are excited by this unique opportunity to significantly strengthen our position in the fast-growing Turkish corrugated market and expand our offering to existing and new customers in the region.”
The transaction is subject to competition clearance and other closing conditions and is expected to close in the first half of 2021.
After completing the transaction, Mondi plans to launch a mandatory tender offer to acquire the remaining 9.62% of outstanding shares from minority shareholders.
Olmuksan generated revenue worth TRY1,093 million (€150 million) and produced 256 thousand tonnes of corrugated packaging in its financial year ended 30 September 2020.
Mondi operates four corrugated packaging plants and a recycled container board paper mill and three flexible packaging sites in Turkey.
The company added that it has operated successfully in the country for many years and has developed a strong understanding of the market and long-term opportunities.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
