(Adds CEO quote and details)
JOHANNESBURG Oct 10 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
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)
(Reporting by Nqobile Dludla; Editing by David Goodman)