South African Mondi to acquire majority stake in Turkish packaging firm

South African-based Mondi, also listed in London, said it would buy the stake from private equity group ARGUS Capital and one of Kalenobel’s founders M. Olcay Hephiz. Mondi did not say how it would pay for the acquisition.

Turkish packaging companies have been attracting European strategic players for some time as the market is seen as having more potential with per-capita consumption of packaging at much lower levels compared to developed markets.

Istanbul-based Kalenobel makes flexible consumer packaging for ice cream, aseptic cartons and other products. The company exports nearly half of its products mainly to Western Europe, the Middle East and North Africa, Mondi said in a statement.

The acquisition is in line with Mondi’s strategy to grow its consumer packaging business and expand to high growth markets, Chief executive David Hathorn said.

Mondi, which made about a fifth of its 6.8 billion euro revenue from consumer packaging last year, said it expects the transaction to purchase Kalenobel to be completed in the second half of 2016.

Mondi, which has operations in more than 30 countries, makes and sells consumer packaging and paper products as part of its Europe and International division’s Packaging Paper business.

In February, Hathorn told Reuters Mondi could borrow to fund acquisitions after spending 94 million euros on snapping up consumer packaging firms last year.