Mondi believes that the combination of its existing network with Graphic Packaging's industrial bags and kraft paper business will create leading bags player in North America.
Mondi Group is set to acquire the industrial bags and kraft paper business of Graphic Packaging International in the US. The two companies agreed on a purchase price of $105m on a debt-free and cash-free basis. The transaction is scheduled for closure by the early third quarter, pending approval by the relevant competition authorities.
Graphic Packaging’s flexible packaging business consists of a 135,000 tpy integrated kraft paper mill in Pine Bluff, Arkansas, and nine bag plants located throughout the US. According to Mondi, the business had unaudited pro forma sales of $437m in the twelve months ended 31 March 2014.