Mondi wants to expand its consumer packaging business to become a leading supplier. The company plans to acquire Germany-based packaging supplier Nordenia to access high-growth emerging markets.
Mondi Group is planning to take over 93,4% of Nordenia International for a consideration of €240m including €398m of debt from Oaktree Capital Management and several minority shareholders. As Mondi reported on 11 July, the enterprise value is put at €655m. The company expects the transaction to be finanlised during the fourth quarter 2012, subject to customary completion conditions including the approval of certain competition authorities. The €240m cash consideration will be funded from a new €250m two-year committed bank debt facility.
Nordenia is an international supplier of consumer packaging solutions and hygiene components with 12 operating facilities located in seven countries across Europe, North America and Asia. Additionally, a wholly-owned greenfield plant currently being constructed in China is expected to commence operations in early 2014.
According to Mondi, Consumer packaging solutions contribute approximately 60% of Nordenia revenues, and include re-closable bags, stand-up pouches, advanced films and laminates for mainly fast moving consumer goods (FMCG). Hygiene components contribute approximately 40% of Nordenia revenues, and include diaper components and film-based feminine hygiene release liner. In 2011, sales to the FMCG sector accounted for over 90% of Nordenia revenues, Mondi stated.
Following the completion of the acquisition, Mondi plans to reorganise its Europe & International Division into four businesses. These will be Uncoated Fine Paper, Packaging Papers, Fibre Packaging and Consumer Packaging. Nordenia will form part of the Consumer Packaging business led by Ralph Landwehr, currently CEO of Nordenia.
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