Europac acquires two French Mondi sites

The deal comprises corrugated packaging sites Mondi Packaging Atlantique and Mondi Packaging Savoie, which processed 125,000 tonnes of paper in 2008.

Mondi Packaging Atlantique and Mondi Packaging Savoie manufacture regular slotted cases, flat-bed die-cut products, shelf-ready packaging, tray solutions and more.

Europac has estimated that the acquisition will boost sales in France and Portugal to 74% of the company’s total sales and increase sales in its cardboard division by some 50% a year.

The company is present in the whole corrugated cardboard supply chain. It employs 1,342 employees across 29 sites located in Spain, Portugal and France.

In February, Mondi reported a net loss of EUR 103m for the year to 31 December, down from a net profit of EUR 382m in the previous year, and a 1% increase in sales of EUR 6.3bn (£5.6bn, at today’s prices).

Mondi’s executive committee led by chief executive David Hathorn have requested not to considered for a salary increase in 2009.

Hathorn’s salary, therefore, will remain at EUR 972,333 (£775,000) per annum, while his bonus for 2008 was cut by 83% to EUR 232,224 (£204,738).