South African paper and packaging firm Mondi has completed the previously announced acquisition of bags and kraft paper business from Graphic Packaging's subsidiary Graphic Packaging International for around $105m.
As part of the deal, announced on 3 June 2014, Mondi has acquired Multi-wall Bag business, comprising nine Multi-wall Bag converting plants located across the US and the Pine Buff, Arkansas kraft paper mill.
Graphic Packaging noted that Multi-Wall Bag plants and kraft mill have generated around $437m revenue in the year to end-March.
The Arkansas kraft paper mill is said to have an annual production capacity of about 135,000t.
At the time of acquisition Graphic Packaging chairman, president and chief executive officer David Scheible said the divestiture will free up valuable resources.
"The anticipated sale of these non-core assets substantially completes our transformation into a pure play, vertically integrated paperboard packaging company," Scheible added.
The sale will also allow the company to focus completely on core paperboard packaging business.
Headquartered in Atlanta, Georgia, Graphic Packaging provides packaging solutions to food, beverage and other consumer products companies.
The company produces folding cartons, coated-unbleached kraft, coated-recycled boxboard multi-wall bag and specialty packaging.