South African packaging firm Mondi is to acquire an Egyptian privately-owned industrial bag maker in order to bolster its presence in the Middle East.
Under the terms of the deal, Mondi intends to acquire 100% of the shares in National Company for Paper Products and Import & Export (NPP) for EGP510m (£20.9m).
NPP operates one plant in Giza, near Cairo, serving regional customers.
Last year, the Egyptian firm reported revenues of EGP577m (£25.5m) and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of EGP107m (£4.41m).
Mondi Group Fibre Packaging CEO Erik Bouts said: “The acquisition of NPP complements our network of plants in the growing Middle East region and provides us with a leading position in Egypt to grow our business and better serve our customers.”
With major operations in central Europe, Russia, North America and South Africa, Mondi is an integrated company that produces pulp, paper and plastic films. It also develops and manufactures industrial and consumer packaging solutions.
The company, which is listed in both London and Johannesburg, recorded revenues of £6.24bn for last year and operates in the Middle East through Mepco Gulf.
The acquisition is scheduled to take place during the first half of this year.
In December last year, Mondi Group agreed to acquire Nordic Packaging and Container Holdings’ division Powerflute Group Holdings, which operates an integrated pulp and paper mill in Kuopio, Finland.