International Paper (IP) has signed an agreement with its joint venture (JV) partner Sabanci Holdings to acquire a 50% stake in Turkish packaging company Olmuksa-International Paper (Olmuksa), for TRY101.2m ($56m).
The acquisition will allow IP to strengthen its foothold in the Turkish packaging market.
IP EMEA packaging business vice president Jon Ernst said Turkey provides growth opportunity for International Paper.
"It's the 7th largest corrugated packaging market in Europe and is set to grow at healthy levels over the coming decade. It also represents a potential growth platform to the Middle East," Ernst said.
The Olmuksa JV, which has a market share of 15% in the Turkish packaging sector, has three sites located in Bursa, Edirne and Gebze in north-western Turkey.
The company produces corrugated containers for the industrial and consumer packaging segments, besides offering packaging solutions and graphic printing on paperboard materials.
The deal represents opportunities for Olmuksa to build on its performance and also signals long term stability in Turkey, access to IP's practices in everything from manufacturing to finance.
Sabanci chief executive officer Zafer Kurtul said the company expects to increase its capital in sectors where it has a greater competitive advantage.
In an attempt to solidify its profitable growth, Sabanci will continue to invest in value-added business segments, research and development and new markets.
Image: Sabanci CEO Zafer Kurtul said the company expects to increase its capital in sectors where it has a competitive advantage. Photo: Sabanci Holding.