LONDON (dpa-AFX) - Mondi plc (MNDI.L), a packaging and paper company, announced Thursday that it has entered into an agreement to sell its Personal Care Components business or PCC to Japanese manufacturer of high functional materials Nitto Denko Corp. for an enterprise value of 615 million euros.
The deal is subject to competition clearance and other customary closing conditions, with completion expected in the second half of 2022.
The company noted that 615 million euros is also the approximate cash consideration payable to Mondi at completion. The proceeds received from the transaction will be used for general corporate purposes in line with the company's capital allocation policy.
PCC, part of the Group's Engineered Materials business unit, manufactures a range of components for personal and home care products needed in everyday life such as diapers, feminine care, adult incontinence and wipes. For the financial year 2020, PCC generated underlying EBITDA of 42 million euros.
Following the planned completion of the deal, the remaining portion of Engineered Materials, namely Functional Papers and Films, will be merged into the Flexible Packaging business unit.
Mondi noted that its strategic focus to grow in packaging and the limited overlap of PCC with the rest of its business, has led it to conclude that the next phase of PCC's development will be better undertaken outside of the Group.
Nitto's acquisition of PCC is aligned with its stated mid-term management plan 'Nitto Beyond 2023', targeting growth in the field of human life.
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