Mondi to acquire Olmuksan, a Turkish corrugated packaging player

Strengthens its position in the Turkish market

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JK Group
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.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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