Anglo American Acquires Mexican Operation

Anglo American plc, based in the UK, announced that its 70 percent owned Austrian subsidiary, Frantschach, has signed an agreement to acquire Copamex’s sack business for $52 million. Copamex is a Mexican based paper and packaging firm.

Frantschach, part of Anglo American’s paper and packaging division which operates under the Mondi name, is a supplier of industrial sacks and kraft paper worldwide.

The sack division of Copamex is the largest industrial sack producer in Mexico and the seventh largest sack producer worldwide. In 2002, the business produced 470 million paper sacks and generated sales of $94 million. The business consists of 4 production sites in Monterrey, Chihuahua, Puebla and Guadalajara.

With this acquisition, Frantschach will become one of the leading North American industrial sack suppliers. Frantschach intends to combine this business with its sack plant near Chicago, in the USA, and focus on expanding its position in the North American market.

In support of the transaction, the parties have concluded a long-term supply agreement for the supply of sack paper from Copamex to the Mexican sack plants of Frantschach.

Closing is expected in February 2004.