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2005-12-13 News Headlines
Constantia Packaging
Group Announces Acquisition in Bulgaria
Duropack AG, subsidiary of Constantia Packaging AG, continues expansion
in Europe as it acquires equity interest in Trakia Papir of Bulgaria.
Entry into Bulgaria represents a decisive step toward becoming a regional
player. Continued expansion for the Corrugated Board division in Southeastern
Europe, which brings with it a 70% market share in Bulgaria and provides
the Group with a second pillar in Southeastern Europe alongside Serbia..
Duropack AG, a 60%-owned subsidiary of Constantia
Packaging AG ,
and 40%-owned by Jefferson Smurfit Group (Europe), agreed in December
to acquire a 47.6% equity interest in Trakia Papir S.A., Bulgaria. Deal
preparations began in May 2005, and the transaction closed last Friday
in Sofia. Concurrently, a second 47.6% equity interest in Trakia was acquired
by an Austrian financial investor. The sellers of both equity blocks were
two European investment holding companies. The remaining 4.8% of the shares
will continue to be traded on the Sofia Stock Exchange. The consolidation
of the acquired equity interest will be retroactive to November 1, 2005..
Duropack
AG
intends to acquire the majority in Trakia in the medium term. “For the
Duropack Group, this acquisition clearly marks a decisive step toward
our goal of becoming the leading supplier of corrugated board packaging
in Southeastern Europe,” said Szivacsek. “The deal allows us to increase
our sales and output by more than 20%.” The plant in Pazardzhik (near
Plovdiv), which was renovated with state-of-the-art equipment by the previous
owners, supplies 70% of the Bulgarian market and also offers excellent
expansion potential to Macedonia, southern Romania, northern Greece and
the European part of Turkey. “This latest acquisition, which complements
the one we made last year in Serbia, gives us a strong regional market
presence and provides us with a great opportunity to enter the remaining
Balkan markets step by step,” commented Szivacsek.
The food, tobacco and alcohol industry are Duropack’s leading customers,
accounting for one-third of sales. Other major customers come from the
electronics, automotive and chemical industries as well as the corrugated
board processing segment. Customers include leading domestic and multinational
corporations such as DaimlerChrysler, BMW, Neusiedler, Nestlé and Unilever.
The Bulgarian market still offers significant growth potential. Trakia
Papir
S.A. already supplies all major domestic and multinational industrial
companies with operations in Bulgaria. “Demand for corrugated board i
s only around one-third the level in Austria, even though the populations
are roughly comparable in size. That gives you an idea of the future growth
potential,” said Szivacsek. The Group is therefore already planning an
expansion of the Trakia plant.
Trakia Papir AG was founded in 1971 and privatized in 1998. Trakia Papir
S.A. produces approximately 55,000 metric tons of corrugated board base
paper and 135,000 square meters of corrugated board annually, with around
680 employees. The company recorded €30 million in sales. It has 70% market
share in Bulgaria and offers expansion potential through exports to Macedonia,
southern Romania and northern Greece. For Duropack AG, the acquisition
of Trakia Papir S.A. is an important and logical step in its expansion
strategy into Southeastern Europe. It follows the previous year's acquisition
in Serbia, and thereby strengthens the Group's long-term position.
Constantia Packaging AG is a publicly listed, strategic management holding.
The company’s main investment areas are the Flexible Packaging and Corrugated
Board businesses. Customers include leading multinational companies in
the food and beverage, pharmaceutical and automotive industries.
Constantia Packaging Group has around 5,000 employees in 20 countries
throughout Europe, Asia and North America. In 2004, the 40 production
facilities generated €945 million in sales, with Europe, the leading market,
accounting for around 90% of the total. The Flexible Packaging business
accounts for some 75% of sales, while Corrugated Board makes up the remaining
25%.
Consolidated results for 2005 will be reported on April 19, 2006.
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