Mondi gobbles Korean pet food pouch maker

Paper and packaging company Mondi has signed an agreement to acquire a 95% stake in South Korean flexible packaging company KSP for an undisclosed sum.

Seoul-based KSP, which specialises in the production of high-quality spouted and retort stand-up pouches for the food, pet food and beverage industries, generated revenues of approximately $50m in the twelve months ended 31 December 2014.

Mondi chief executive David Hathorn said: “This acquisition further supports Mondi’s strategy to develop in high value-added, high-growth markets in our consumer packaging business.”

The deal, which remains subject to competition clearance, is expected to complete during the fourth quarter of 2015.

At 0935 GMT, Mondi shares were up 0.4% at 1,510p.