Mondi to sell personal care components unit to Nitto Denko for €615m
Mondi plc, a UK-based packaging and paper group, has agreed to divest its personal care components business to Japan-based Nitto Denko for €615 million.
According to Mondi, its strategic focus is to expand in packaging and the limited overlap of personal care components with the rest of its business has driven its decision to sell it.
A part of Mondi’s engineered materials business unit, the personal care components business is engaged in manufacturing a variety of components for personal and home care products required for daily life like diapers, adult incontinence, feminine care, and wipes.
In 2020, the personal care components unit of Mondi generated €42 million in underlying EBITDA.
Andrew King — CEO of Mondi Group said: “We are pleased to have agreed the sale of PCC to Nitto, knowing they will be great owners of the business. 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.”
After wrapping up the deal, Mondi will merge Functional Papers and Films, which will be the remaining part of its engineered materials division, into the Flexible Packaging business division.
Nitto Denko is a manufacturer of high functional materials for electronics, human life, and mobility applications. Its acquisition of Mondi’s personal care components business is said to be in line with its mid-term management plan dubbed ‘Nitto Beyond 2023’, which targets growth in the field of human life.
Hideo Takasaki — President, CEO, and COO of Nitto Denko said: “We expect this acquisition will make a great contribution to achieve the ‘Nitto Beyond 2023’ goals not only by speeding up innovation in the human life domain but also by promoting ESG management, by involving a new base in Germany, the leading country in Europe, to take the lead in environmental initiatives and strengthen infrastructure management through Nitto’s business functions in the region.”
The deal, which is subject to competition clearance and other conditions, is expected to close in the latter half of this year.