Mondi Group, South Africa, has signed an agreement for the sale of its recycled containerboard mill and related recycling operations located in Raubling, Germany, to the Heinzel Group, Vienna, Austria, for an enterprise value of EUR 25 million on a debt and cash free basis.

The transaction remains subject to competition clearance and is expected to complete by the end of 2015.

Mondi notes that the sale enables it to focus on the development of its core containerboard operations in line with its strategy.

Mondi is an international packaging and paper group, employing around 25,000 people across more than 30 countries. Its key operations are located in central Europe, Russia, North America, and South Africa. In 2014, Mondi had revenues of EUR 6.4 billion and a return on capital employed of 17.2%.