Mondi Plc, international packaging materials market giant, has apparently given the nod to purchase a privately-owned Egypt-based industrial bags maker for a valuation of EUR 23.7 million. If reports are to be believed, Mondi’s acquisition offer of over USD 28 million comes on the heels of its supposed intention to expand further in the Middle East packaging materials market.
For the uninitiated, the industrial bags manufacturer – the National Company for Paper Products and Import & Export S.A.E (NPP), operates a regional plant in Giza, near Cairo. Last year, the facility generated a revenue of EUR 29 million and adjusted EBITDA of around EUR 5 million.
Mondi’s chief executive of fiber packaging, Erik Bouts, reportedly has been quoted stating that NPP’s acquisition sufficiently complements the packaging materials industry firm’s network of plants across the Middle East. In addition, he says, the takeover positions the company in a better place in Egypt to successfully expand its operations and efficiently serve its consumer base.
Incidentally, Mondi has long since established its place in the Middle East packaging materials market as a prominent manufacturer of industrial bags and boasts of four well-tended plants in the region. The company produces bags that are suitable for maintaining the freshness of produce, rapid filling, or heavy-duty use.
In a bid to further fortify its stance in the global packaging space, Mondi has apparently taken on a project worth around EUR 750 million, primarily to increase the production capacity at its paper mills. Through this venture, Mondi plausibly aims to cater to higher demand from the container & corrugated packing as well as a few domains of the consumer packaging sectors and ultimately increase its revenue, beginning 2019.
Also listed on the London Stock Exchange, Mondi, in an official statement, claimed to purchase all the shares in NPP on a debt and cash free-basis.