The paper and packaging producer Mondi Group, will acquire the Finnish producer of cardboard panels Powerflute for 365 million Euros. On 22nd December 2018, the company signed an agreement with Nordic Packaging and Container Holdings (NPAC Holdings) for the acquisition of 100% of the available shares in the capital of Powerflute Group Holdings, i.e. Powerflute’s holding company and wood supplier Harvestia. The agreement is expected to be finalized in the first six months of this year, if it is regularly approved.
Powerflute runs an integrated plant for the processing of pulp and paper in Kuopio, Finland, with an annual production capacity of 285 thousand tons of semi-chemical fluting paper.
Fluting, which is mainly composed of paper obtained from recycled fibres, but also includes cardboard made from chemical and semi-chemical pulp, is largely used for the packaging of fresh fruit and vegetables, yet other final uses include packaging for electronic, chemical and pharmaceutical articles. About half of the articles produced are sold in Europe, while the remaining part is exported worldwide. In the financial year closed on 31st December 2017, Powerflute is expected to generate revenues worth 183 million Euros and a corrected Ebitda of about 42 million Euros. The assets will be integrated in the Mondi’s Packaging Paper Business Unit.
«The acquisition of Powerflute supports our strategy of investment in premium quality packaging products», says the Mondi Group CEO Peter Oswald. «We are thrilled about the opportunity to expand our offer to our customers, thereby further expanding our range of cardboard products and geographical coverage»
Mondi employs about 25 thousand people in over 30 countries. Its main business activities are in central Europe, Russia, North America and South Africa. In 2016 turnover registered by the group was 6.7 billion Euros.
NPAC Holdings, i.e. a subsidiary company of Madison Dearborn Partners (MDP), declared its intention to keep its stake in the Corenso group of companies after the sale of Powerflute.