Mondi Group to Acquire Beepack Corrugated in Russia
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Mondi Group, South Africa, has signed an agreement to acquire 100% of the outstanding share capital of LLC Beepack, Russia, from a private investor for a consideration of RUB 2,825 million (EUR 41 million) on a debt-and-cash-free basis.
Beepack’s plant in Lebedyan (Lipetsk region of Russia, around 400 km south of Moscow) makes a range of corrugated packaging trays and boxes for food and agricultural products, including beverages, fruit and vegetables, poultry, and dairy. Customers include local Russian and international producers. For the year ended Dec. 31, 2015, Beepack generated revenues of RUB 2,782 million (EUR 41 million) and adjusted EBITDA of RUB 462 million (EUR 7 million).
David Hathorn, chief executive of Mondi Group, said that "the acquisition of Beepack supports the ongoing development of our corrugated packaging business in central and eastern Europe. It enables us to enter a market with strong growth potential while expanding our geographic reach to better serve our customers."
The transaction remains subject to customary closing conditions and is expected to complete in Q4 2016.
Mondi is an international packaging and paper group, employing around 25,000 people across more than 30 countries. Itsr key operations are located in central Europe, Russia, North America, and South Africa. The company offers more than 100 packaging and paper products, customized into more than 100,000 different solutions for customers, end consumers, and industrial end uses. In 2015, Mondi had revenues of EUR 6.8 billion and a return on capital employed of 20.5%.
