Mondi Group, a leading international paper
and packaging company, announced that it has agreed to acquire 93.4% of the
outstanding share capital of Nordenia International AG from funds managed by
Oaktree Capital Management, L.P. and certain other minority shareholders for a
total cash consideration of EUR240 million. In addition, Mondi Group will
assume EUR398 million of debt and debt-like liabilities implying an enterprise
value for 100% of the Company of EUR655 million.
Nordenia is an international supplier of
innovative 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 31 December 2011 of EUR99 million and EUR70 million, respectively, the
implied enterprise value equates to 6.6 times 2011 EBITDA and 9.3 times 2011
EBIT.
The EUR240 million cash consideration payable
for the Acquisition will be funded from a new EUR250 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.
Commenting on the Acquisition, David Hathorn,
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”.
Nordenia is a leading supplier of innovative
consumer packaging solutions and hygiene components. Consumer packaging
solutions contribute approximately 60% of Nordenia revenues, and include
re-closable bags, stand-up pouches, advanced films and laminates for mainly
fast moving consumer goods sector. In 2011, sales to the FMCG sector accounted
for over 90% of Nordenia revenues.
