South African paper and packaging firm Mondi has acquired 95% stake in a flexible packaging company KSP in South Korea.
KSP operates a production plant in Seoul, in addition to having an interest in another plant in Thailand.
Nearly two thirds of KSP's production is supplied to customers in food, pet food and drinks industries mainly in the US, Europe and other Asian countries.
KSP generated around $50m in annual revenues for the twelve months ended 31 December 2014, PackagingNews reported.
The addition of KSP's operations will complement Mondi's existing stand-up pouch packaging operations in Austria and the US.
Mondi said that the deal will allow it to better serve its customers in the US and Asia.
Commenting on the acquisition, Mondi CEO David Hathorn said: "This acquisition further supports Mondi's strategy to develop in high value-added, high-growth markets in our Consumer Packaging business."
Under a separate deal, Mondi agreed to divest its recycled containerboard mill and related recycling operations in Raubling, Germany to Heinzel Group for €25m.
By offloading its Raubling mill, Mondi will focus on developing its core containerboard operations.
Subject to competition clearance, the sale is expected to be completed by the end of this year.
Mondi currently employs close to 25,000 people across its operations in central Europe, Russia, North America and South Africa.
The company's portfolio includes over 100 packaging and paper products, customised into more than 100,000 different solutions for customers and end consumers.
Image: The addition of KSP's operations will complement Mondi's existing stand-up pouch packaging operations in Austria and the US. Photo: courtesy of Mondi.
