Mondi's world expands
packaging business, Mondi Packaging, with German firm Bauernfeind's
corrugated paper and packaging business. The Bauernfeind Trust will
receive approximately 5.3 million Anglo American shares in exchange
for Bauernfeind, which values its equity contribution at €94
million.
Bauernfeind comprises a combination of corrugated paper and converting assets in Germany, Belgium, Austria, Poland, Italy, Switzerland and China. A total of five paper mills produce around 580,000 tonnes per annum of mainly waste based corrugated case materials (CCM) on seven paper machines. The converting business consists of 10 plants with a corrugating capacity of 1,200 mm2 currently producing around 700 mm2 per annum.
Net debt in Bauernfeind on closing is estimated to be at around €250 million, giving an implied enterprise value of €344 million. Anglo American will own 100 per cent of the enlarged Mondi Packaging. This transaction is subject to the relevant regulatory approvals.
Mondi Packaging is an integrated producer of corrugated paper, corrugated board and corrugated boxes and currently produces around 735,000 tonnes per annum of corrugated paper and 1,400 mm2 of converted corrugated packaging.
The transaction will result in the combined group becoming the 4th largest European corrugated producer. "This transaction builds on our existing position in corrugated packaging and is a complementary fit with Mondi Packaging's existing business, providing a broader coverage of key European markets," said David Hathorn, chief executive of the Mondi group. "The transaction is in line with Mondi Packaging's stated strategy of acquisition led growth in order to establish critical mass in corrugated packaging."
Mondi Europe forms part of Anglo Paper and Packaging, a division of Anglo American. Anglo Paper and Packaging contributed 21 per cent to Anglo American's headline earnings for the six-month period to 30 June 2003, making it the second largest contributor to the Anglo group.
Headline earnings rose by 16 per cent from $153 million to $178 million. Anglo Paper and Packaging's operating profit was $357 million, 23 per cent higher than for the first six months of 2002, with Mondi South Africa contributing $97 million and Mondi Europe $260 million.
Anglo American is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in gold, platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and paper and packaging. The group is geographically diverse, with operations and developments in Africa, Europe, South and North America and Australia.
