Mondi Packaging UK has bought the packaging and paper assets of Danisco Pack UK, including two waste-based paper mills, for 64m.

Group marketing manager Ian Gordon said the acquisition made Mondi the third largest corrugated packaging company in the UK.

Gordon didnt know the total number of staff employed at the plants. He said no drastic changes were planned, but there could be some management reshuffling at the top level.

The two mills acquired are Creams in Bolton and Holcombe in Ramsbottom. They have a combined capacity of 140,000 tonnes a year of testliner and fluting recycled packaging paper.

The mills will be part of a new division called Mondi Paper UK. Most of the capacity will serve Mondis other UK sites, but some will be put into the market.
This continues our growth strategy and adds a new dimension to our portfolio, said Gordon, who said that the company might look at further acquisitions in Europe.

The deal also includes 11 sheet plants, a sheet feeder and four integrated plants.

Mondi is also selling several converting operations in the south-east to DS Smith Packaging for 20m.
Danisco divested most of its European operations in 1999 to SCA in a 147m deal, but this did not include the UK operations.

Story by Andy Scott