TURKEY – British multinational packaging and paper group 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 €66 million (about US$81.46 million).
The sale is the culmination of plans by Tennessee based International paper (IP) to reorganize its business interests in Turkey.
The company had issued a notice in October 2020 indicating it was exploring the sale of its stake in Olmuksan.
That notice stated IP was evaluating “various alternatives for the packaging press business in Turkey” that included “sale to potential investors or sale in the relevant share market of Borsa İstanbul Financial advisors.”
Olmuksan is a leading and well-established corrugated packaging player in Turkey, listed on the Istanbul stock exchange.
The company has a of five plants that provide a diverse customer base with high-quality sustainable packaging for food, beverage, agriculture and industrial applications.
“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.”
Andrew King, Mondi Group Chief Executive Officer
For the twelve months ended 30 September 2020, the Olmuksan produced 256 thousand tonnes of corrugated packaging and generated revenues of €150 million (about US$150 million).
Mondi has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities.
The British paper maker’s current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites.
The new plants that come in as a result of the acquisition will be a welcome addition to the Mondi group of companies in Turkey.
Commenting on the acquisition, Andrew King, Group Chief Executive Officer of Mondi said: “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.”
“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,” King added.
The transaction remains subject to competition clearance and other closing conditions and is expected to complete in the first half of 2021.
Mondi further noted that following the completion of the transaction, it had plans to launch a mandatory tender offer to acquire the remaining 9.62% of outstanding shares in the Company held by minority shareholders.
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