Mondi Group has agreed a cash deal with Duropack to acquire its German and Czech Republic operations for €125m to strengthen its corrugated and containerboard position in Europe.
The deal for two corrugated box plants and one recycled containerboard mill will be completed subject to approval by the relevant competition authorities.
The two corrugated box plants consume 130 thousand tonnes of containerboard per annum and the recycled containerboard mill is capable of producing 105 thousand tonnes per annum.
For the year ended 31 December 2011, the operations generated revenues of €160m and pre-tax profit of €23m.
Mondi currently has nine operations in Germany and three production sites in the Czech Republic.
The firm said it would assume €5m net cash upon completion of the deal, implying an enterprise value of €120m.
A Mondi spokeswoman told FoodProductionDaily.com the acquisition was a good opportunity and made strategic sense.
“We are always looking for potential moves to fit within our strategy and we wouldn’t have made the acquisition if we didn’t think it made sense.
"It will open up a number of synergies and boost our strong market position.
“The acquisition will strengthen our position in packaging and our corrugated business and is a clear sign of our focus on Central and Eastern Europe.”
All employees of operations from Duropack Wellpappe Ansbach and Duropack Bupak will be taken on by Mondi Group.
The news follows the acquisition of Nordenia International into Mondi’s consumer packaging business for €240m in July.
Duropack will continue to run packaging and corrugated board operations in Slovakia, Austria, Bulgaria, Macedonia and Serbia.
“Our strategy is consequently focused on East- and Southeast-Europe. The sale of our operations in Germany and the Czech Republic further strengthens our profile and allows us to focus entirely on our core markets and core business, packaging”, said Peter Szivacsek, CEO of Duropack Group.
In 2010, Duropack strengthened its geographic focus with the acquisition of the majority of the shares in Croatian corrugated base paper and packaging producer Belišce.