Mondi has entered into an agreement to sell its Personal Care Components business (PCC) to Nitto Denko Corp for an enterprise value of €615m, which is also the approximate cash consideration payable to Mondi at completion.
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.
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 €42 million.
Following the planned completion of the Transaction, the remaining portion of Engineered Materials, namely Functional Papers and Films, will be merged into the Flexible Packaging business unit. This will strengthen integration along the kraft paper value chain and foster innovation to continue developing functional papers with the necessary barriers to meet increasing customer demand for sustainable packaging.