Mondi to buy Beepack for EUR41m

FTSE 100 paper and packaging group Mondi has agreed to buy Russia-based Beepack from a private investor for €41m on a debt and cash-free basis.

The company’s plant in Lebedyan, which is around 400 km south of Moscow, makes a range of corrugated packaging trays and boxes for food and agricultural products including beverages, fruit and vegetables, poultry and dairy.

Its customers include local Russian and international producers. For the year ended 31 December 2015, Beepack generated revenues of 2.78bn roubles and adjusted earnings before interest, taxes, depreciation and amortisation of 462m.

Chief executive David Hathorn said: “The acquisition of Beepack supports the ongoing development of our corrugated packaging business in central and eastern Europe. It enables us to enter a market with strong growth potential while expanding our geographic reach to better serve our customers.”

At 0925 BST, Mondi shares were up 0.2% to 1,681p.