Mondi Group has signed an agreement to acquire 100% of the shares in Powerflute Group Holdings Oy, a division of Nordic Packaging and Container Holdings, for a total consideration of €365 million. Powerflute operates a paper mill in Kuopio, Finland with an annual production capacity of 285,000 tonnes of high-performance semi-chemical fluting. For the year ended 31st December 2017, the company is expected to generate revenues of around €183 million and unaudited pro-forma adjusted EBITDA of around €42 million. Powerflute will be integrated into Mondi’s Packaging Paper Business Unit.
Commenting on the acquisition, Peter Oswald, Chief executive of Mondi Group, said, “The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets. We are excited by this opportunity to expand our customer offering by further broadening our containerboard product range and geographic reach.”
The transaction remains subject to competition clearance and customary closing conditions and is expected to complete in the first half of 2018.