Mondi to acquire Olmuksan, a Turkish corrugated packaging player

Strengthens its position in the Turkish market

0
103
Mondi
Corrugated cartons Image: Flipkart

Mondi has agreed to acquire 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.Ş (“Olmuksan” or the “Company”) from International Paper for a total consideration of EUR 66 million (approximately Rs 592 crore). The implied enterprise value on a 100% basis would amount to around EUR 88 million (approximately Rs 790 crore).

Olmuksan is a well-established corrugated packaging player in Turkey, listed on the Istanbul stock exchange. Its network of five plants provides a diverse customer base with high-quality, sustainable packaging for food, beverage, agriculture, and industrial applications. For the twelve months ended 30 September 2020, the company produced 256 thousand tonnes of corrugated packaging and generated revenues of TRY1,093 million (approximately Rs 1,346 crore).

Mondi has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities. Our current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites. Leveraging our expertise and experience in this market, together with our global virgin and recycled containerboard portfolio, we expect to generate significant operational improvements and paper integration upside.

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,” says Andrew King, Group chief executive officer of Mondi

The transaction remains subject to competition clearance and other closing conditions and is expected to complete in the first half of 2021. Following the completion of the transaction, Mondi will launch a mandatory tender offer to acquire the remaining 9.62% of outstanding shares in the company held by minority shareholders.

Mondi is a global enterprise in packaging and paper, contributing to a better world by making innovative packaging and paper solutions that are sustainable by design. Its business is fully integrated across the value chain – from managing forests and producing pulp, paper, and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is at the center of its strategy. In 2019, Mondi had revenues of EUR 7.27 billion (approximately Rs 65,267 crore) and underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR 1.66 billion (approximately Rs 14,902 crore).

Mondi has a premium listing on the London Stock Exchange (MNDI) and a secondary listing on the JSE (MNP). Mondi is a FTSE 100 constituent and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007.

As you join us today from India and elsewhere, we have a favour to ask. Through these times of ambiguity and challenge, the packaging industry in India and in most parts of the world has been fortunate. We are now read in more than 90 countries as our coverage widens and increases in impact. Our traffic as per analytics more than doubled in 2020 and many readers chose to support us financially even when advertising fell to pieces.

As we come out of the pandemic in the next few months, we hope to again expand our geography and evolve our high-impact reporting and authoritative and technical information, with some of the best correspondents in the industry. If there were ever a time to support us, it is now. You can power Packaging South Asia’s balanced industry journalism and help to sustain us by subscribing.

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here