Packaging company Mondi plc has reached an agreement to sell its Personal Care Components (PCC) business to Nitto Denko Corporation (Nitto) for an enterprise value of €615 million.
The agreement, subject to competitive clearance and other customary conditions, is expected to close in the second half of 2022.
Proceeds from the transaction will be used for general corporate purposes in accordance with Mondi’s capital allocation policy.
The company aims to focus on growing its packaging business and believes that the next phase of PCC’s development will be best undertaken outside of the group.
PCC manufactures a range of components for personal and home care products, such as diapers, feminine care, adult incontinence and wipes.
Main focus area
Mondi Group CEO Andrew King said: “By simplifying our portfolio, the transaction will allow us to focus on our core packaging and paper businesses and enhance our ability to pursue our strategic priority of growth in sustainable packaging.
“We remain excited about our opportunity to further serve our customers with innovative solutions that are sustainable by design.”
Nitto, headquartered in Japan and listed on the Tokyo Stock Exchange, is a manufacturer of highly functional materials for electronics, mobility and other products.
The acquisition of PCC aligns with Nitto’s mid-term management plan – Nitto Beyond 2023.
After the closing of the transaction, the remaining part of Mondi’s technical materials, namely functional papers and films, will be merged into the Flexible Packaging business unit.
This move will strengthen integration throughout its kraft paper value chain and drive innovation in functional papers.
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