Mondi Group has signed an agreement to acquire 100% of the outstanding shares in Powerflute Group Holdings Oy, a division of Nordic Packaging and Container Holdings, for a total consideration of €365 million on an enterprise value basis.

Powerflute operates an integrated pulp and paper mill in Kuopio, Finland, with an annual production capacity of 285,000 tons of high-performance semi-chemical fluting. Powerflute’s premium semi-chemical fluting is sold to a diverse range of customers, primarily for packaging fresh fruit and vegetables, but also other end uses such as electronics, chemicals and pharmaceuticals. Around half of the company’s production is sold in Europe, while the remainder is exported globally.

For the year ended December 31, 2017, the company is expected to generate revenues of around €183 million and unaudited pro-forma adjusted EBITDA of around €42 million. Powerflute will be integrated into Mondi’s Packaging Paper Business Unit.

Commenting on the acquisition, Peter Oswald, chief executive of Mondi Group, says, “The acquisition of Powerflute supports our strategy of investing in high-quality packaging and paper assets. We are excited by this opportunity to expand our customer offering by further broadening our containerboard product range and geographic reach.”

The transaction remains subject to competition clearance and customary closing conditions, and is expected to be completed in the first half of 2018.