Mondi Ltd. agreed to buy 90 percent of Turkey’s Kalenobel for about 90 million euros ($101 million) as the South African manufacturer expands its international packaging business.
Kalenobel makes consumer packaging for ice cream and other products from two manufacturing sites north-west of Istanbul, Johannesburg-based Mondi said in a statement on Thursday. The purchase is expected to close in the second half of the year.
Mondi, which has its roots in printing paper and was spun out of Anglo American Plc in 2007, gets about 75 percent of its revenue from packaging, including 19 percent from consumer packaging in 2015. Chief Executive Officer David Hathorn has said he’s seeking further growth from the business.
The shares traded 0.4 percent lower at 295.84 rand as of 10:11 a.m. in Johannesburg, valuing the company at 145 billion rand ($9.2 billion).
“The acquisition of Kalenobel supports the growth of our consumer packaging business, broadening our product portfolio and geographic reach to better serve our customers in high-growth markets,” Hathorn said in the statement.
The full name of the business is Kale Nobel Ambalaj Sanayi ve Ticaret AS.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.
