Mondi strengthens position in Middle East

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Mondi strengthens position in Middle East

Published Date: 2018-05-02 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mondi strengthens position in Middle East

The paper and packaging group has bought an Egyptian industrial bag maker, giving it a leading position in that country

Mondi has catapulted to a leading position in the Egyptian market for industrial bags with the purchase of National Company for Paper Products and Import & Export (NPP). The paper and packaging company confirmed on Monday it was paying €23.7 million for NPP on a debt and cash free basis.

NPP is a privately owned industrial bags producer, operating one plant in Giza, south-west of Cairo. It supplies most of its bags to customers in the region. The company generated revenues of about €29 million and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of €5 million.

Mondi already claims to be the leading industrial bags producer in the Middle East, operating four plants in the region.

"The acquisition of NPP complements our network of plants in the growing Middle East region and provides us with a leading position in Egypt to grow our business and better serve our customers," Erik Bouts, CEO Fibre Packaging at Mondi, said in a statement.

The group expects to close the deal during the first half of the year. Shares of Mondi Limited surged 5.3% to R363.96 just as the market closed on Monday, while Mondi Plc ended 0.3% higher at R347.85.



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