Mondi Group has signed an agreement to acquire 100% of the outstanding share capital of LLC Beepack (“Beepack”) from a private investor for a consideration of RUB2,825 million (EUR41 million) on a debt-and-cash-free basis.
Beepack’s plant in Lebedyan (Lipetsk region of Russia, around 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. Customers include local Russian and international producers. For the year ended 31 December 2015 Beepack generated revenues of RUB2,782 million (EUR41 million) and adjusted EBITDA of RUB462 million (EUR7 million).
David Hathorn, Chief executive of Mondi Group, said: “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.”
The transaction remains subject to customary closing conditions and is expected to complete in Q4 2016.
