Global paper and packaging group Mondi has completed the acquisition of 99.93% of the outstanding share capital of Nordenia International for €259m, from funds managed by Oaktree Capital Management and minority shareholders. In addition, Mondi Group will assume €398m of debt and debt-like liabilities.
According to South Africa-based Mondi, the acquisition of the German packaging firm, which was originally announced in July 2012, will give an opportunity for the group to create a consumer packaging business and build on long-term customer relationships across both companies.
Following the acquisition, Mondi Group will reorganise its Europe and international division into four businesses, including uncoated fine paper (UFP), packaging papers, fibre packaging and consumer packaging. Nordenia will form part of the consumer packaging business.
Mondi will assume Nordenia’s €280m bond as part of the acquisition, which has a coupon of 9.75% and is due in 2017.
Mondi hopes to capitalise on Nordenia’s technology, product portfolio, customer know-how and manufacturing capability to expand in the emerging markets.
Nordenia is constructing a wholly-owned greenfield plant in China, which is expected to begin operations in early 2014.
The company supplies consumer packaging solutions and hygiene components with 12 fully invested operating facilities located in seven countries across Europe, North America and Asia.
Mondi, which has production operations across 29 countries and revenues of €5.7bn in 2011, has key operations in central Europe, Russia and South Africa.
Image: Paper and packaging company Mondi completes Nordenia acquisition. Photo: Mondi