Mondi to Divest Its Personal Care Components Business for EUR 615 Million

Mondi's Personal Care Components business manufactures a range of components for personal and home care products such as diapers, feminine care, adult incontinence and wipes.

Feb. 17, 2022 - Mondi today announced that it has entered into an agreement to sell its Personal Care Components business ('PCC') to Nitto Denko Corporation for an enterprise value of EUR 615 million, which is also the approximate cash consideration payable to Mondi at completion of the transaction.

Mondi's strategic focus to grow in packaging and the limited overlap of PCC with the rest of its business has led Mondi to conclude that the next phase of PCC's development will be better undertaken outside of the Group.

"We are pleased to have agreed the sale of PCC to Nitto, knowing they will be great owners of the business," said Andrew King, CEO of Mondi Group. "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."

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 to 31 December 2020, PCC generated underlying EBITDA of EUR 42 million.

Headquartered in Japan, Nitto is a leading global manufacturer of high functional materials for electronics, mobilities and human life applications.

Following the planned completion of the transaction, the remaining portion of Engineered Materials, namely Functional Papers and Films, will be merged into Mondi's Flexible Packaging business unit.

Mondi is a global leader in packaging and paper, offering innovative and sustainable packaging and paper solutions. The company is fully integrated across the packaging and paper value chain. To learn more please visit: www.mondigroup.com.

SOURCE: Mondi