Mondi to acquire Turkish packaging company Olmuksan

Mondi will acquire 90.38 percent of the company’s shares in the first half of 2021.

Mondi has announced that it will be acquiring Turkish corrugated packaging company Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.S (Olmuksan) for €66 million (about R1.2 billion).

The company said that it will buy 90.38 percent of the outstanding shares in Olmuksan from International Paper. The implied enterprise value of the Turkish company, on a 100 percent basis, would amount to around €88 million.

Olmuksan is a well-established corrugated packaging player in Turkey. Its five plants provide a diverse customer base with sustainable packaging for food, beverage, agriculture and industrial applications.

Mondi has operated in Turkey for many years and has a strong understanding of the market and its long-term opportunities, the group said.

Mondi CEO Andrew King (pictured) said their current Turkish footprint included four corrugated packaging plants and a recycled containerboard paper mill, and three flexible packaging sites. “Leveraging our expertise and experience in this market, with our global virgin and recycled container-board portfolio, we expect significant operational improvements and paper integration upside.”

He said the acquisition was an opportunity to “significantly strengthen our position in the fast-growing Turkish corrugated market and expand our offering in the region”.

The transaction is expected to be completed in the first half of 2021. After this, Mondi will launch a mandatory offer to acquire the remaining 9.62 percent of shares in the company held by minority shareholders.