Mondi Group has signed an agreement to acquire 100% of the outstanding shares in Powerflute Group Holdings, a division of Nordic Packaging and Container Holdings.
Powerflute operates an integrated pulp and paper mill in Kuopio (Finland) with an annual production capacity of 285,000 tonnes of high performance semi-chemical fluting. Powerflute's premium semi-chemical fluting is sold to a diverse range of customers, primarily for packaging fresh fruit and vegetables, but also other end uses such as electronics, chemicals and pharmaceuticals.
Around half of the company's production is sold in Europe, while the remainder is exported globally.
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.