Paper company Mondi Ltd said on Thursday it had signed a deal to buy 90 percent shares in Turkey’s Kalenobel for around 90 million euro ($101 million) as part of a plan to grow its packaging business.
South African-based Mondi, also listed in London, said it would buy the stake from private equity group ARGUS Capital and one of Kalenobel’s founders M. Olcay Hephiz. Mondi did not say how it would pay for the acquisition.
Turkish packaging companies have been attracting European strategic players for some time as the market is seen as having more potential with per-capita consumption of packaging at much lower levels compared to developed markets.
Instanbul-based Kalenobel makes flexible consumer packaging for ice cream, aseptic cartons and other products. The company exports nearly half of its products mainly to Western Europe, the Middle East and North Africa, Mondi said in a statement.
The acquisition is in line with Mondi’s strategy to grow its consumer packaging business and expand to high growth markets, Chief executive David Hathorn said.
Mondi, which made about a fifth of its 6.8 billion euro revenue from consumer packaging last year, said it expects the transaction to purchase Kalenobel to be completed in the second half of 2016.
Mondi, which has operations in more than 30 countries, makes and sells consumer packaging and paper products as part of its Europe and International division’s Packaging Paper business.
In February, Hathorn told Reuters Mondi could borrow to fund acquisitions after spending 94 million euros on snapping up consumer packaging firms last year.
($1 = 0.8929 euros)
By Tanisha Heiberg
BASF will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengthens BASF’s cathode active materials (CAM) production and recycling hub in Schwarzheide. The site is an ideal location for the build-up of battery recycling activities given the presence of many EV car manufacturers and cell producers in Central Europe.
Clariant says it is reducing its number of businesses from five to three, by merging units, under a reorganization that is in line with the company’s purpose-led strategy and cultural transformation. The moves will position Clariant for long-term sustainable growth, the company says.
Chemicals & plastics industry has the most diversified end-use market across all manufacturing industries. The industry returned to growth in 2021 but a supply chain crunch prevented it from becoming stronger. The market is likely to stabilize in the second half of 2022 with a supply-demand balance.