Mondi divests its packaging-converting operations in Russia to Gotek Group for US$25.6 million

Mondi plc says it will sell its three Russian packaging-converting operations to the Gotek Group for about US$25.6 million in cash.

The three packaging-converting operations comprise a corrugated solutions plant and two consumer flexible-packaging plants, producing a range of packaging solutions for the domestic Russian market. The loss on the divestiture is in the range of US$75-$86 million at current exchange rate.

The Gotek Group is a leading Russian packaging producer, headquartered in Moscow, and employs around 2,200 employees across its business.

The sale is conditional on the approval of the Russian Federation’s Government SubCommission for the Control of Foreign Investments and customary antitrust approvals and is expected to complete in the first half of 2023. However, as the sale is being undertaken in an evolving political and regulatory environment, there can be no certainty as to when it will be completed.