International Paper to Sell Turkish Corrugated Packaging Business

The companyâ€™s corrugated packaging production during the year ended 30th September, 2020 had totalled 256,000 metric tons.

SEATTLE (Scrap Monster): Memphis, Tennessee-headquartered International Paper (IP) announced that it has reached an agreement with U.K.-based Mondi Group towards sale of its majority ownership interest in Turkish corrugated packaging business.

As per the deal, the company will sell 90.38% of its ownership interest in Olmuksan International Paper to Mondi Group. The deal is valued at around 66 million euros, sources said. The transaction is expected to close during the initial quarter of the current year, subject to certain closing conditions and customary approvals. Furthermore, Mondi Group plans to announce a mandatory tender offer to acquire the remaining 9.62% of outstanding shares held by minority shareholders.

Global Corrugated Packaging Market Forecast to Grow at 3.7% CAGR

Earlier in October last year, IP had disclosed plan to explore strategic options for its ownership stake in the Turkish business. At that time, the company said that it is evaluating various alternatives for the packaging press business in Turkey. In fact, the sale evaluation process had started in the month of August 2020 itself.

The sold assets include Olmuksan’s corrugated packaging facilities in Turkey, whose approximate annual revenue is estimated at nearly 150 million euros. The company’s corrugated packaging production during the year ended 30^th September, 2020 had totalled 256,000 metric tons.

The transaction is in line with its strategy to serve markets from an advantaged position, noted IP press release.