Corrugated packaging company Mondi says the implied enterprise value of Olmuksan on a 100% basis would amount to around €88m ($108m)
Corrugated packaging giant Mondi has agreed to acquire 90.38% of the outstanding shares in Olmuksan from fellow packaging giant International Paper for a total consideration of €66m ($81m).
The implied enterprise value on a 100% basis according to Mondi would amount to around €88m ($108m).
Olmuksan is a leading and well-established corrugated packaging player in Turkey, listed on the Istanbul stock exchange.
According to Mondi, its network of five plants provides a diverse customer base with high-quality sustainable packaging for food, beverage, agriculture and industrial applications.
For the 12 months ending on September 30 2020, the company produced 256 thousand tonnes of corrugated packaging and generated revenues of 1bn Turkish Lira (TRY) ($135m).
Mondi’s group chief executive officer Andrew King 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.”
The transaction between Mondi and Olmuksan subject to competition clearance
Mondi has operated within Turkey for many years and has developed a strong understanding of the market and its long-term opportunities.
The corrugated packaging business currently has a Turkish footprint that includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites.
Leveraging its expertise and experience in this market, together with its global virgin and recycled containerboard portfolio, the firm expects to generate significant operational improvements and paper integration upside.
The transaction remains subject to competition clearance as well as other closing conditions, which 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.