South African paper and packaging group Mondi has signed an agreement to acquire the operations of Duropack in Germany and the Czech Republic for €125m, in an effort to strengthen its market position in corrugated packaging in central and eastern Europe.
The acquisition comprises two corrugated box plants and one recycled containerboard mill, which consume about 130,000t of containerboard per annum and can produce 105,000t, respectively.
Mondi Group, which plans to fund the consideration payable for the acquisition from its existing resources, will assume about €5m net cash as of the same date, involving an enterprise value of €120m.
According to the company, the operations for the year ended 31 December 2011, generated unaudited pro forma consolidated revenues of €160m and unaudited pro forma consolidated adjusted earnings before interest taxes depreciation and amortization (EBITDA) of €23m.
Mondi has production operations across 28 countries, revenues of €5.7bn in 2011 and primarily manufactures packaging paper, converted packaging products and uncoated fine paper.