Johannesburg-based packaging producer Mondi Group will acquire Russian flexible packaging producer Uralplastic. The company states it will acquire 100 percent of Uralplastic's shares from Joint Stock Company Rusnano and a private investor.
Mondi says the transaction is expected to be complete by the end of this month.
David Hathorn, CEO Mondi Group, 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.”
Uralplastic focuses on flexible packaging products for markets such as food, hygiene and homecare. It has one plant near Ekaterinburg, in the Ural region of Russia and saw sales of 1.98 billion rubles ($32.3 million) in 2015.
Mondi has operations located in central Europe, Russia, North America and South Africa. The company reported sales of 6.8 billion euros ($7.5 billion) in 2015.