Restructuring of Mondi Europe & Acquisition News
Anglo American PLC
16 May 2000
ANGLO AMERICAN PLC ANNOUNCES RESTRUCTURING OF MONDI EUROPE AND
ACQUISITION OF ASSI SACKS
Anglo American plc ('AA plc') announced today two transactions which
will significantly consolidate and expand its European Forest Products
interests. The transactions will be earnings enhancing on a net
earnings basis and will be funded by debt, raising AA plc's net debt
position by around US$ 1.1bn.
RESTRUCTURING OF MONDI EUROPE
Mondi Europe, a subsidiary of AA plc, today concluded agreements in
relation to its interests in Frantschach and Neusiedler in line with
Mondi's strategy of increasing its focus on uncoated woodfree paper and
paper packaging.
Mondi Europe, which currently owns 49% of Neusiedler, a leading European
producer of fine paper, will acquire from Frantschach its 51% stake in
Neusiedler. This will give Mondi Europe 100% ownership of Neusiedler.
Mondi Europe, which owns 50% of Frantschach AG, will acquire a further
20% interest in Frantschach. This will give Mondi Europe 70% ownership
and full control of Frantschach.
The cash consideration for the above two transactions will amount to
ATS3,945 million (US$262 million). The transactions will significantly
simplify the group structure of Mondi Europe.
For the year ended 31 December 1999, Neusiedler's turnover was US$435
million (1998: US$452m), earnings before interest and tax were US$40
million (1998: US$42m) and net earnings were US$27 million (1998:
US$29m).
For the year ended 31 December 1999, Frantschach's turnover was US$1,396
million (1998: US$1,256m), earnings before interest and tax were US$111
million (1998: US$103m) and net earnings were US$70 million (1998:
US$53m).
ACQUISITION OF ASSIDOMAN'S SACK BUSINESS
Frantschach Packaging has agreed with Swedish paper group, AssiDoman, to
purchase all of its industrial sack business, two of its sack paper mills and
its barrier coating business, collectively referred to as Assi Sacks, for a
debt free cash consideration of between E550 million (US$490m) and E565
million (US$503m), subject to an earn out.
In line with its stated strategy of expanding into the European industrial
sack and flexible packaging sectors, the acquisition of Assi Sacks will secure
Frantschach Packaging's position as a leading European industrial sack
producer.
The acquisition includes Assi Sacks' two industrial paper sack mills, Sepap,
in the Czech Republic, and Dynas, in Sweden, as well as 16 industrial sack
converting operations and seven barrier coating plants, situated throughout
Europe.
The transaction will result in Frantschach Packaging's current production of
sack paper rising from 260,000 tonnes per annum to 480,000 tonnes per annum,
its industrial sack production rising from 2 billion to 2.9 billion and its
barrier coating production rising from 300 million m2 to 1.5 billion m2.
For the year ended 31 December 1999, Assi Sacks' turnover was US$519 million
(1998: US$490m) and earnings before interest and tax was US$14.1 million
(1998: US$12.7m). For the quarter ended 31 March 2000, Assi Sacks' turnover
was US$185 million (1999: US$136 million) and earnings before interest and tax
was US$18 million (1999: US$4m). This improvement is due to a re-organisation
programme which has been implemented within Assi Sacks and the results for the
first quarter are in line with the expectation for the full year.
Both of the above transactions will be subject to European competition
clearance.
Commenting on the above transactions, Anglo American plc executive director
and chairman of the Anglo Forest Products division, Tony Trahar said, 'Mondi
sees the paper sack business as a core growth area and the acquisition of Assi
Sacks significantly boosts our position in Europe as a leading producer of
industrial sacks. In addition, we believe there will be significant scope for
productivity improvements and synergies with our existing sack operations.
The acquisition of the 51% stake in Neusiedler and our increased stake in
Frantschach gives Mondi 100% ownership of Neusiedler and full control of
Frantschach, further simplifying our structure.'
Enquiries:
Mondi
David Hathorn
Tel: +43 664 411 2176
Anglo American
Nick von Schirnding Anne Dunn
Tel: +44 (0)20 7698 8540 Tel: +27 11 638 4730
Mob: +27 82 448 2684
DESCRIPTION OF MONDI EUROPE BUSINESSES
Mondi Packaging
Mondi Packaging (Europe) is a leading UK corrugated packaging group which also
has operations in France, producing a full range of corrugated products. It
has a production capacity of 750 million square metres of corrugated packaging
annually from 15 plants in the UK and 6 plants in France.
Neusiedler
Neusiedler produces uncoated woodfree paper for office communications at four
locations in Austria and Hungary. The company has an annual capacity of 510
000 tonnes, approximately 33% of which is located in Hungary. At the end of
the year Neusiedler acquired 50.1% of AIPM's 115 000 tonnes uncoated woodfree
mill in Israel.
Frantschach Packaging Group (before the acquisition of Assi)
The Frantschach Packaging Group is one of Europe's largest producers of paper
sack and sack paper, with 37 sack plants situated in Austria, Czech Republic,
Denmark, Switzerland, Germany, Belgium, Holland, Italy, Spain, Slovenia,
Turkey, Greece, Luxembourg, Poland, Hungary, Cyprus, Jordan, Malaysia and
Egypt producing approximately 2 billion sacks per annum
Swiecie
Swiecie S.A. ('Swiecie') is the largest pulp, paper and packaging company in
Poland. Swiecie is a single site operation and has a production capacity of
320 000 tonnes of unbleached pulp which is used to produce 100 000 tonnes of
unbleached sack kraft paper, 360 000 tonnes of corrugated case materials and
80 000 tonnes of wrapping. Swiecie also has convertor capacity of 150 million
sacks and 90 million square metres of corrugated board.
Europapier
Europapier is Austria's largest paper merchant and is a major player in many
East European countries including Hungary, Slovakia, the Czech Republic,
Slovenia and Poland. Europapier sells graphic papers, office communication
paper and other office supplies as well as packaging papers.
Pols
Zellstoff Pols ('Pols') is a single site market pulp producer and is central
Europe's largest producer of bleached long-fibre kraft pulp. The mill has a
production capacity of 300 000 tonnes per annum. The company also operates a
small paper machine which produces 12 000 tonnes of bleached kraft paper a
year
Aylesford
Aylesford Newsprint is an UK based producer of 100% recycled fibre newsprint.
Located close to London, Aylesford is a single site operation with two paper
machines with a total production capacity of 390 000 tonnes per annum.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund