Mondi to Divest Personal Care Unit – Nonwovens Industry Magazine
Company to sell component business to Nitto Denko as it focuses more on packaging
Karen McIntyre, Editor17.02.22
Mondi plc has reached an agreement to sell its personal care components business to Nitto Denko Corporation for an enterprise value of €615 million, which is also the approximate cash consideration payable to Mondi upon closing of the transaction . Mondi’s strategic focus to expand into packaging and PCC’s limited overlap with the rest of its business has led Mondi to conclude that the next phase of PCC’s development will be best undertaken outside of the group.
PCC, part of the group’s Technical Materials business unit, manufactures a range of components for everyday necessary personal and home care products such as diapers, feminine care, adult incontinence and wipes. In 2020, PCC generated underlying EBITDA of €42 million.
Nitto is one of the world’s leading manufacturers of highly functional materials for electronics, mobilities and human life applications, in line with its “Global Superior Niche Strategy” headquartered in Japan and listed on the Tokyo Stock Exchange. The acquisition of PCC by Nitto is aligned with its medium-term management plan “Nitto Beyond 2023”, targeting growth in the field of human life.
Following the expected completion of the transaction, the remaining portion of engineered materials, namely functional papers and films, will be merged into Mondi’s flexible packaging business unit. This will strengthen integration throughout the kraft paper value chain and drive innovation to continue to develop functional papers with the necessary barriers to meet growing customer demand for sustainable packaging.
“We are delighted to have accepted the sale of PCC to Nitto, knowing that they will be strong owners of the business,” said Andrew King, CEO of Mondi. “By simplifying our portfolio, the transaction will allow us to focus on our core packaging and paper businesses and improve 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.”
The transaction is expected to be finalized in the second half of 2022.