Mondi has agreed to acquire 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret from International Paper for a total consideration of €66 million. The implied enterprise value on a 100% basis would amount to around €88 million.

Olmuksan is a leading and well-established corrugated packaging player in Turkey, listed on the Istanbul stock exchange. Its network of five plants provides a diverse customer base with high-quality sustainable packaging for food, beverage, agriculture and industrial applications. For the twelve months ended 30 September 2020, the company produced 256 thousand tonnes of corrugated packaging and generated revenues of TRY1,093 million (€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. Our current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites. Leveraging our expertise and experience in this market, together with our global virgin and recycled container board portfolio, we expect to generate significant operational improvements and paper integration upside,” says Andrew King, group chief executive officer of Mondi

The transaction remains subject to competition clearance and other closing conditions and 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.