Anglo American announces Euro 94m merger of Bauernfeind's Corrugated Paper and Packaging business
10 December, 2003
Anglo American plc ("Anglo American") announces it has entered into an agreement for the merger of Bauernfeind's Corrugated Paper and Packaging business (“Bauernfeind”) with Anglo American's corrugated packaging business, Mondi Packaging.
The Bauernfeind Trust will receive approximately 5.3 million Anglo American shares in exchange for Bauernfeind, valuing its equity contribution at €94 million. 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% of the enlarged Mondi Packaging. This transaction is subject to the relevant regulatory approvals.
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.
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.
David Hathorn, CEO of the Mondi group, said, "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. The transaction is in line with Mondi Packaging's stated strategy of acquisition led growth in order to establish critical mass in corrugated packaging."
Note for Editors
Mondi Europe forms part of Anglo Paper and Packaging, a division of Anglo American plc. 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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