Johannesburg-based packaging and paper company Mondi Group has entered an agreement to acquire 90% of an outstanding share in Turkey's consumer packaging company Kalenobel for €90m.
The stake will be purchased from Argus Capital, a central and eastern Europe (CEE) focused private equity group, and M Olcay Hephiz, one of the company's founders.
The transaction will be carried out on a debt-and-cash-free basis.
Mondi Group chief executive David Hathorn said: "The acquisition of Kalenobel supports the growth of our consumer packaging business, broadening our product portfolio and geographic reach to better serve our customers in high-growth markets."
Subject to customary closing conditions, the deal is expected to be completed during the second half of this year.
Founded in 1955, Kalenobel produces flexible consumer packaging for ice cream and other applications, as well as aseptic cartons.
The company has two manufacturing sites in the northwest of Istanbul, Turkey, and serves international fast-moving consumer goods (FMCG) companies as well as regional food and beverage producers.
Kalenobel exports around half of its production, mainly to Western Europe, Middle East and North Africa.
Mondi Group provides more than 100 packaging and paper products, which are customised into more than 100,000 different solutions for customers, end consumers and industrial end uses worldwide.
In April, the company completed the acquisition of a corrugated plant located in Grabonóg, Poland, from SIMET.