Austrian packaging firm Mondi Group (Mondi) has signed a €365m agreement to acquire a 100% stake in Powerflute Group Holdings (Powerflute), a division of Nordic Packaging and Container Holdings (NPAC Holdings.

The completion of the transaction is subject to competition clearance and customary closing conditions, which is expected to take place by the first half of next year.

Upon completion of the transaction, Powerflute will be integrated into Mondi’s Packaging Paper Business unit.

“The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets.”

Mondi is an international packaging and paper group, which employs approximately 25,000 people worldwide.

The company primarily operates in central Europe, Russia, North America and South Africa.

Mondi Group chief executive Peter Oswald said: “The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets. We are excited by this opportunity to expand our customer offering by further broadening our containerboard product range and geographic reach.”

Based in Kuopio, Finland, Powerflute operates an integrated pulp and paper mill that produces nearly 285,000t of semi-chemical fluting (SCM).

Powerflute’s SCM is used for packaging fresh fruit and vegetables, as well as other end-users such as electronic, chemical and pharmaceutical manufacturers.

The company noted that the majority of the SCM product is sold in Europe, while the remainder is exported globally.