Mondi has entered into an agreement to acquire Olmuksan International Paper from International Paper. Mondi said it agreed to acquire 90.38 percent of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret (Olmuksan) for approximately €66 million. The implied enterprise value on a 100 percent basis would amount to around €88 million.

Olmuksan is a 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), said Mondi.

International Paper said the sale is in line with its strategy “to serve markets from an advantaged position”, adding that corrugated packaging remains a strategic business in EMEA.

Mondi has operated successfully in Turkey for many years and has developed a strong understanding of the market and its long-term opportunities, as per the statement. The company’s current Turkish footprint includes four corrugated packaging plants and a recycled containerboard paper mill, as well as three flexible packaging sites.

“We are excited by this unique opportunity to significantly strengthen our position in the fast-growing Turkish corrugated market and expand our offering to existing and new customers in the region,” said 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 percent of outstanding shares in the company held by minority shareholders.