Mondi has agreed to acquire 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.Ş from International Paper for a total consideration of €66m. The implied enterprise value on a 100% basis would amount to around €88m.
Olmuksan is a well-established corrugated packaging producer 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 256,000 tonnes of corrugated packaging and generated revenues of TRY1,093 million (€150m).
Mondi has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities. Its current Turkish footprint includes four corrugated packaging plants and a recycled containerboard mill, as well as three flexible packaging sites.
”We are excited by this 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,” commented 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.
