We advised Mondi Group on the acquisition of Powerflute Group, a division of Nordic Packaging and Container Holdings.
The transaction values Powerflute at EUR 365 million on an enterprise value basis. Powerflute operates an integrated pulp and paper mill in Kuopio (Finland) with an annual production capacity of 285,000 tonnes of semi-chemical fluting. The semi-chemical fluting is sold to a diverse range of customers, primarily for packaging fresh fruit and vegetables, but also other end-uses such as electronics, chemicals and pharmaceuticals. Around half of the Company’s production is sold in Europe, while the remainder is exported globally.
We advised Mondi Group together with McDermott Will & Emery UK LLP, the UK legal counsel, and Allen & Overy, the lead competition counsel.
We were responsible for the legal due diligence of the entire target group with subsidiaries in multiple jurisdictions and advised on the transaction documentation. We submitted the merger control notification to the Finnish Competition and Consumer Authority. We also represented Mondi Group before the European Commission regarding the FCCA’s rare request for a referral of the case to the European Commission.
The transaction agreement was signed on 12 December 2017. The European Commission cleared the transaction in May 2018. The transaction is expected to complete in the first half of 2018.
Mondi Group (listed both on the JSE Limited and the London Stock Exchange) is a global leader in packaging and paper, providing its customers and consumers with innovative and sustainable packaging and paper solutions. Mondi is fully integrated across the packaging and paper value chain – from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. In 2017, Mondi had revenues of EUR 7.10 billion.