Nordenia deal offers Mondi ‘unique opportunity’

- Acquisition offers opportunity to create a leading consumer packaging business

 

- Acquisition will be funded from new committed bank debt facility

 

Mondi Group’s acquisition of Nordenia International will allow the former to create a ‘leading consumer packaging business’, and target growth in high-growth emerging markets.

 

Mondi has agreed to acquire 93.4 percent of the outstanding share capital of Nordenia and certain other minority shareholders for a total cash consideration of €240 million. In addition, Mondi Group will assume €398 million of debt and debt-like liabilities, implying an enterprise value for 100 percent of the Nordenia of €655

million.

                                      

Nordenia is an international supplier of consumer packaging solutions and hygiene components, with 12 fully invested operating facilities located in seven countries across Europe, North America and Asia.

 

Additionally, a wholly-owned greenfield plant currently being constructed in China is expected to begin operating in early 2014.

 

Based on Nordenia’s EBITDA and EBIT for the year ended December 31, 2011 of €99 million and €70 million, respectively, the implied enterprise value equates to 6.6 times 2011 EBITDA and 9.3 times 2011 EBIT.

 

The €240 million cash consideration payable for the acquisition will be funded from a new €250 million two-year committed bank debt facility.

 

The acquisition is expected to complete in the fourth quarter of 2012, subject to customary completion conditions including the approval of certain competition authorities.

 

Mondi Group is a leading international paper and packaging company, while Nordenia is a worldwide operating manufacturer of flexible packaging, technical films and product components.

 

David Hathorn (pictured, top), chief executive of Mondi Group, said: ‘The acquisition of Nordenia offers Mondi Group a unique opportunity to create a leading consumer packaging business, build on long term customer relationships across both businesses and establish a platform to expand further in high-growth emerging markets.’

 

Read more on M&A activities the packaging market in PPW issue #3, 2012, to be published mid-August

 

Read more on flexible packaging here