JOHANNESBURG, June 3 Paper and packaging firm
Mondi said on Tuesday it will buy the U.S. bags and
kraft paper business of Graphic Packaging International
for $105 million as it seeks to grow its presence in
the world's largest economy.
Mondi, a South African company also listed in London
, said the acquisition will be on a debt and cash-free
basis and would be funded from its existing resources.
"The combination of the business with Mondi's existing
network will create a leading bags player in North America and
expand the group's growing global footprint in this market,"
chief executive David Hathorn said in a statement.
Kraft paper refers to a type of paper often used in
Graphic Packaging International is a subsidiary of Graphic
(Reporting by Olivia Kumwenda-Mtambo; editing by David Dolan)