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MONDI PLC - Mondi Group to acquire the industrial bags and kraft paper business of Graphic Packaging International

Release Date: 03/06/2014 12:00
Code(s): MNP MND     PDF:  
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Mondi Group to acquire the industrial bags and kraft paper business of Graphic Packaging International

Mondi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI

As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi
Group' or ‘Mondi’) notify both the JSE Limited and the London Stock Exchange of matters
required to be disclosed under the Listings Requirements of the JSE Limited and/or the
Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.

3 June 2014


Mondi Group to acquire the industrial bags and kraft paper business of Graphic
Packaging International, Inc. in the US

Mondi Group is pleased to announce it has agreed to acquire the bags and kraft paper business
(“the Business”) of Graphic Packaging International Inc., a wholly owned subsidiary of Graphic
Packaging Holding Company, for a total consideration of USD105 million on a debt- and cash-
free basis (the “Acquisition”).

The Business is a leading player in the production and distribution of kraft paper and bags in the
United States of America (the “US”). The production base comprises an integrated kraft paper
mill located in Pine Bluff Arkansas, with production capacity of 135 thousand tonnes per annum,
and nine bags plants across the US. The Business generated unaudited pro forma sales of
approximately USD437 million in the twelve months ended 31 March 2014.

Mondi is a leading global supplier of kraft paper and industrial bags, with a network of 36
industrial bags plants in Europe, the Middle East, North Africa, South-East Asia and North
America, including four plants in Mexico and the US, and five kraft paper mills in Europe
producing over 1 million tonnes per annum.

The consideration payable for the Acquisition will be funded from existing resources available to
the Mondi Group. The acquisition is expected to complete towards the end of Q2/early Q3 2014,
subject to certain completion conditions, including the approval of the relevant competition
authorities.

Commenting on the Acquisition, David Hathorn, Chief Executive of Mondi Group, said:
“The combination of the Business with Mondi’s existing network will create a leading bags
player in North America and expand the Group’s growing global footprint in this market. We look
forward to offering innovative solutions to our enlarged customer base.

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.”

/ends

Contact:

Mondi Group
Lora Rossler
Group Corporate Affairs Manager
Tel: +27 (0)83 627 0292
E-mail: lora.rossler@mondigroup.co.za

Andrew King
Group CFO
Tel: +27 (0)11 994 5415
E-mail: andrew.king@mondigroup.com

FTI Consulting
Richard Mountain
+44 7909 684 466

Sophie McMillan
+44 20 3727 1359

About Mondi:

Mondi is an international packaging and paper Group, employing around 24,000 people in
production facilities across 31 countries. In 2013, Mondi had revenues of EUR6.5 billion and a
ROCE of 15.3%. The Group's key operations are located in central Europe, Russia, the
Americas and South Africa.

The Mondi Group is fully integrated across the packaging and paper value chain - from the
management of its own forests and the production of pulp and paper (packaging paper and
uncoated fine paper), to the conversion of packaging paper into corrugated packaging, industrial
bags, extrusion coatings and release liner. Mondi is also a supplier of innovative consumer
packaging solutions, advanced films and hygiene products components.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi
Limited under the ticker code MND and a premium listing on the London Stock Exchange for
Mondi plc, under the ticker code MNDI. The Group’s performance, and the responsible
approach it takes to good business practice, has been recognised by its inclusion in the
FTSE4Good Global, European and UK Index Series (since 2008) and the JSE's Socially
Responsible Investment (SRI) Index since 2007.

Sponsor in South Africa: UBS South Africa (Pty) Ltd



END

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