JSE-listed paper and packaging manufacturer Mondi has entered into an agreement to sell its Personal Care Components (PCC) business to Tokyo-listed materials manufacturer Nitto Denko Corporation for €615-million.
The disposal aligns with Mondi’s strategy to focus on growth in the packaging sector.
PCC manufactures a range of products for personal and home care, including diapers, feminine hygiene, adult incontinence and wipes.
Nitto manufactures materials for electronics, mobilities and human life applications.
Since the PPC division was part of Mondi’s Engineering Materials business unit, the balance of what comprised the unit – functional papers and films – will be merged into the Flexible Packaging business unit.
Mondi believes this merger exercise will strengthen integration along the kraft paper value chain and foster innovation to continue developing functional papers for sustainable packaging.
The group will use the proceeds of the sale of the PCC business for general corporate purposes and the transaction is expected to close some time in the second half of the year.
Mondi CEO Andrew King comments that the transaction enables the group to simplify its portfolio and focus on the core packaging and paper businesses to ultimately better serve customers with innovative solutions.