Mondi Group Signs Agreement to Acquire Powerflute

Mondi Group has signed an agreement to acquire 100% of the outstanding shares in Powerflute Group Holdings Oy, a division of Nordic Packaging and Container Holdings, for a total consideration of €365 million on an enterprise value basis.
 
Powerflute operates an integrated pulp and paper mill in Kuopio, Finland, with an annual production capacity of 285,000 tons of high-performance semi-chemical fluting. Powerflute’s premium semi-chemical fluting is sold to a diverse range of customers, primarily for packaging fresh fruit and vegetables, but also other end-uses such as electronics, chemicals and pharmaceuticals.
 
For the year ended Dec. 31, 2017, the Company is expected to generate revenues of approximately €183 million and unaudited pro-forma adjusted EBITDA of nearly €42 million. Powerflute will be integrated into Mondi’s Packaging Paper Business Unit.
 
“The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets,” Peter Oswald, chief executive of Mondi Group, said.