JSE- and LSE-listed Mondi will acquire Russia-based corrugated packaging producer Beepack for €41-million from a private investor.
The transaction, which remains subject to customary closing conditions and is expected to be finalised in the fourth quarter of this year, will be bought on a debt-and-cash-free basis.
“The acquisition of Beepack supports the ongoing development of our corrugated packaging business 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,” explained Mondi CEO David Hathorn in a statement on Monday.
Beepack’s plant is based in Lebedyan, some 400 km south of Moscow.
For the year ended December 31, 2015, Beepack generated revenues of €41-million and adjusted earnings before interest, taxes, depreciation and amortisation of €7-million.