International packaging and paper firm Mondi Group has agreed to acquire 100% stake in Powerflute Group Holdings Oy, a unit of Nordic Packaging and Container Holdings (NPAC), in a deal worth €365m on an enterprise value basis.
Finish paper and packaging company Powerflute operates an integrated pulp and paper mill in Kuopio, Finland. The plant has annual production capacity of 285,000 tons of high-performance semi-chemical fluting.
Powerflute’s premium semi-chemical fluting is primarily for packaging fresh fruit and vegetables. It is also used for other end-uses such as electronics, chemicals and pharmaceuticals.
Of the total production from the plant, about half is in Europe, while the remainder is exported globally.
Commenting on the acquisition Mondi Group CEO Peter Oswald said: “The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets.
“We are excited by this opportunity to expand our customer offering by further broadening our containerboard product range and geographic reach.”
Planned to be completed in the first half of 2018, the deal is subject to competition clearance and customary closing conditions.
Earlier this year, Mondi Group has acquired Excelsior Technologies, a vertically-integrated producer of flexible packaging solutions, for £33m (€38m).
Excelsior Technologies has been acquired from funds managed by Endless and certain other minority shareholders.
It operates two manufacturing facilities located in Northern Wales and Lancashire in the UK.
Employing around 25,000 people, Mondi has operations in central Europe, Russia, North America and South Africa.
Image: Mondi Group will acquire Powerflute Group Holdings Oy. Photo: courtesy of adamr/FreeDigitalPhotos.net.