Sector News

Mondi to buy Russian packaging firm Beepack

October 10, 2016
Chemical Value Chain

South Africa’s Mondi has signed an agreement to acquire Beepack from a private investor for 41 million euros ($46 million) as part of plans to expand its packaging business, the paper group said on Monday.

Mondi, which is also listed in London, expects to complete the transaction in the fourth quarter, with CEO David Hathorn saying that the Russian business will support the development of Mondi’s Corrugated Packaging operations in central and eastern Europe.

“It enables us to enter a market with strong growth potential while expanding our geographic reach to better serve our customers,” Hathorn said.

Beepack generated revenue of 2.78 billion roubles ($45 million) in the year to Dec. 31, 2015, with adjusted earnings before interest, tax, depreciation and amortisation of 462 million roubles, Mondi said in a statement.

The Russian company’s Lebedyan plant about 400 km south of Moscow makes a range of corrugated packaging trays and boxes for food and agricultural products, including beverages, fruit and vegetables, poultry and dairy produce.

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 that Mondi could borrow to fund acquisitions after spending 94 million euros buying consumer packaging businesses last year. ($1 = 0.8928 euros) ($1 = 62.2255 roubles)

By Nqobile Dludla

Source: Reuters

comments closed

Related News

January 29, 2023

Dow and 3M cut thousands of jobs

Chemical Value Chain

3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.

January 29, 2023

Sweden discovers Europe’s largest rare earths deposit

Chemical Value Chain

Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.

January 29, 2023

Avantium to supply Henkel with plant-based FDCA

Chemical Value Chain

Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).

How can we help you?

We're easy to reach