South Africa’s Mondi Group, a leading supplier of kraft paper and industrial bags, is to acquire the US industrial bag and kraft paper business of Graphic Packaging International for US$105 million.
CEO David Hathorn told press, “The combination of the business with Mondi’s existing network will create a leading bags player in North America and expand the group’s growing global footprint in this market.”
Mondi has an international network of 36 industrial bag plants, including four plants in Mexico and the US. Graphic Packaging International has an integrated kraft paper mill in Arkansas and nine bag plants across the US.
Mondi is reported to be funding the acquisition from its existing resources on a debt and cash-free basis.
Edited from various sources by Katherine Guenioui