The USD105 million deal comprises an integrated kraft paper mill in Pine Bluff Arkansas and nine bags plants across the US, with sales of approximately USD437 million in the twelve months ended 31 March 2014. Mondi Group announced the intention to acquire this business on 3 June 2014.
Allen Ennis, previously Senior Vice President for the Flexible Division of Graphic Packaging, will lead the combined business as President Industrial Bags, Mondi North America. In addition, Thomas Ott, COO Mondi Industrial Bags will move to the US to oversee the integration. The headquarters for Mondi Group in North America will be in Atlanta, GA.
Customer requirements will be prioritized throughout the integration phase of the business. “I am confident that the synergies expected from the acquisition, coupled with Mondi's proven expertise as a leading global kraft paper and industrial bags producer, will ensure that the combined business delivers strongly and benefits customers," explains Hathorn.
Industrial bags and kraft paper are a core part of Mondi’s business. Its existing network already includes 36 industrial bags plants in Europe, the Middle East, North Africa, Southeast Asia and North America, including four plants in Mexico and the US, and five kraft paper mills in Europe producing over 1 million tons per year.
