Jul 11, 2012
Mondi boosts consumer packaging business with Nordenia aquisitionBack
Building|Components|Mondi|Nordenia International|Oaktree Capital Management|Packaging|Asia|Europe|North America|China|Consumer Packaging Solutions|Packaging|Paper And Packaging|Solutions|David Hathorn
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The LSE- and JSE-listed group would buy the shares from funds managed by Oaktree Capital Management and certain other minority shareholders for €240-million in cash. It would also assume €398-million in debt and debt-like liabilities.
Nordenia has operating facilities in seven countries across Europe, North America and Asia. It is also building a greenfield plant in China, which will start operating in early 2014.
"The acquisition of Nordenia offers Mondi a unique opportunity to create a leading consumer packaging business, build on long-term customer relationships across both businesses and establish a platform to expand further in high-growth emerging markets,” commented CEO David Hathorn.
Following the completion of the acquisition, Mondi would reorganize its Europe & International paper division into four businesses, namely uncoated fine paper, packaging papers, fibre packaging and consumer packaging. Nordenia would form part of the consumer packaging business.
For the year ended December 31, Nordenia generated €881-million in revenue and earnings before interest, taxes, depreciation and amortisation of €99-million and net earnings of €14-million.
Consumer packaging solutions contribute about 60% of Nordenia’s revenues with hygiene components making up the balance.
Mondi would fund the cash consideration from a new €250-million two-year committed bank debt facility.
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