Cape Town - Mondi Group has signed an agreement to acquire Beepack LLC from a private investor for the equivalent of €41 million, the company said on Monday.
Mondi, which is listed on the JSE and in London, said in a statement that the acquisition of Beepack supported the ongoing development of its corrugated packaging business in central and eastern Europe.
Beepack’s plant in Lebedyan, in the Lipetsk region of Russia, around 400km south of Moscow, produces a range of corrugated packaging trays and boxes for food and agricultural products including fruit, vegetables and poultry. Customers include Russian and international producers.
For the year to the end of December 2015, Beepack generated revenues of €41 million and adjusted earnings before interest, tax, depreciation and amortisation of €7 million.
David Hathorn, Mondi Group’s chief executive, said of the acquisition: “It enables us to enter a market with strong growth potential while expanding our geographic reach to better serve our customers.”
The international packaging and paper group employs around 25 000 people across more than 30 countries. Key operations are in central Europe, Russia, North America and South Africa.
The transaction, which is subject to conditions, is expected to be completed in the fourth quarter of this year.
AFRICAN NEWS AGENCY