Packaging firm Mondi plc has entered into an agreement to sell its Personal Care Components business (PCC) to Nitto Denko Corporation (Nitto) for an enterprise value of €615 million.
The deal, subject to competition clearance and other customary conditions, is expected to close in the second half of 2022.
The proceeds from the transaction will be used for general corporate purposes in line with Mondi’s capital allocation policy.
The company aims to focus on growing its packaging business and feels that the next phase of PCC’s development will be better 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.
Core Focus Area
Chief executive officer of Mondi Group, Andrew King, said, “By simplifying our portfolio, the transaction will enable us to focus on our core packaging and paper businesses and enhance our ability to pursue our strategic priority to grow in sustainable packaging.
"We remain excited by 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 high functional materials for electronics, mobilities and other products.
The acquisition of PCC aligns with Nitto’s mid-term management plan – Nitto Beyond 2023.
Following the completion of the transaction, the remaining portion of Mondi’s engineered materials, namely functional papers and films, will be merged into the Flexible Packaging business unit.
The move will strengthen integration along its kraft paper value chain and foster innovation in functional papers.