Mondi to buy Russian packaging outfit

Mondi said it has signed an agreement to buy 100% of the outstanding share capital of ZAO Uralplastic-N from Joint Stock Company Rusnano and a private investor for an undisclosed sum.

Uralplastic operates one plant near Ekaterinburg, in the Ural region of Russia and manufactures a range of consumer flexible packaging products for food, hygiene, homecare and other applications, Mondi said.

The company serves both local and international customers. For the year ended 31 December 2015 Uralplastic generated revenues of RUB 1.988bn (€29.2m) and adjusted earnings before interest, tax, depreciation and amortisation of RUB 318m (€4.7m).

Chief executive David Hathorn said: “The acquisition of Uralplastic supports the development of our Consumer Packaging business and strengthens our presence in the Russian consumer packaging market, complementing our existing plant in Pereslavl, near Moscow and allowing us to improve our offering to customers in this growing market.”

The transaction is expected to complete in July 2016, the company added.