Mondi Group Acquires Duropack
Mondi Group has signed an agreement with Duropack GmbH (‘Duropack’) for the acquisition of Duropack’s operations (the ‘Operations’) in Germany and the Czech Republic (the ‘Acquisition’), which consist of two corrugated box plants and one recycled containerboard mill.
Mondi is an international paper and packaging Group, with production operations across 28 countries and revenues of €5.7 billion in 2011. The Group currently has nine operations in Germany and three production sites in the Czech Republic. Their key operations are located in central Europe, Russia and South Africa and as at the end of 2011, Mondi employed 23,400 people.
All employees of operations from Duropack Wellpappe Ansbach in Germany and Duropack Bupak in Czech Republic will be taken on by Mondi Group. The two corrugated box plants consume approximately 130,000 tonnes of containerboards per annum while the recycled containerboard mill is capable of producing 105 thousand tonnes per annum.
The Acquisition is in line with Mondi Group’s strategy to strengthen its leading market position in corrugated packaging in central and Eastern Europe. The completion of the deal is conditional on the approval by the relevant competition authorities and other customary closing conditions.
The consideration to be paid for 100% of the Operations amounts to €125m and will be paid in cash at completion. Mondi Group will assume approximately €5m net cash as of the same date, implying an enterprise value of €120m. For the year ended 31 December 2011, the Operations generated unaudited pro forma consolidated revenues of €160m and unaudited pro forma consolidated adjusted EBITDA of €23m. The consideration payable for the Acquisition will be funded from existing resources available to Mondi Group.
The company Duro Pack (M) Sdn.Bhd. packaging machinery is a leading supplier of packaging and processing machines and equipment to the food, snack food, bakery, confectionary, frozen food, pet food, pharma and chemical industries.
Duropack will continue to run packaging and corrugated board operations in Slovakia, Austria, Bulgaria, Macedonia and Serbia. The sale of their operations in Germany and the Czech Republic allow them to further strengthen their profile and align their focus on East and Southeast Europe.
Hauser Partners Rechtsanwalte GmbH advised Mondi Group in the acquisition of the operations of Duropack GmbH in Germany and the Czech Republic. The team of Hauser Partners was able to utilise their extensive experience in handling cross-border M&A transactions to meet the client’s expectations to handle a large volume multinational transaction at a very high speed. Hauser Partners is a boutique for highly specialised services. Legal know-how, a long-term experience and an understanding of the business needs of the client provide a cutting edge for their clients’ benefit.
Advisor To Mondi Group
Founder & Managing Partner Wulf Gordian Hauser commented:
"The team of Hauser Partners was able to meet the client's expectations to handle a large volume multinational transaction at a very high speed. This was possible due to the long experience of our team in handling cross-border M&A transactions."