Anglo American acquires Mexican sack producer from Copamex Group
17 September, 2003
Anglo American plc (“Anglo American”) announces that Frantschach, its 70% owned Austrian subsidiary, has signed an agreement for the acquisition of the sack business of Mexican paper and packaging group Copamex, for a total cash consideration of $52 million.
Frantschach, part of Anglo American's paper and packaging division which operates under the Mondi name, is the largest supplier of industrial sacks and kraft paper worldwide and a leading supplier in flexible packaging and coating with sales of about €1.9 billion.
The sack division of Copamex is the largest industrial sack producer in Mexico and the seventh largest sack producer worldwide. In 2002, the business produced 470 million paper sacks and generated sales of $94 million. The business, with its headquarters in Monterrey, consists of 4 production sites in Monterrey, Chihuahua, Puebla and Guadalajara.
With this acquisition, Frantschach will become one of the leading North American industrial sack suppliers. Frantschach intends to combine this business with its sack plant near Chicago, in the USA, and focus on expanding its position in the North American market.
In support of the transaction, the parties have concluded a long-term supply agreement for the supply of sack paper from Copamex to the Mexican sack plants of Frantschach.
The transaction is subject to relevant regulatory approvals. Closing is expected in February 2004.
Notes to Editors
Anglo Paper and Packaging, a division of Anglo American plc, operating under the Mondi name, is an integrated paper and packaging group with operations and interests in Europe South Africa, Asia and the Americas. The operations manufacture pulp, graphic papers, packaging papers, board and converted packaging, as well as solid wood products. Anglo Paper and Packaging contributed 21% 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% from $153 million to $178 million. Anglo Paper and Packaging's operating profit was $357 million, 23% higher than for the first six months of 2002, with Mondi South Africa contributing $97 million and Mondi Europe $260 million.
Anglo American plc 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 forest products. The group is geographically diverse, with operations in Africa, Europe, South and North America and Australia. (www.angloamerican.co.uk)
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