Mondi to Acquire Nordenia International

Mondi Group, South Africa, has agreed to acquire 93.4% of Nordenia International AG, Germany, from funds managed by Oaktree Capital Management and other minority shareholders for a total cash consideration of EUR 240 million. In addition, Mondi will assume EUR 398 million of debt and debt-like liabilities.

Nordenia is an international supplier of consumer packaging and hygiene components with 12 operating facilities 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 Dec. 31 2011 of EUR 99 million and EUR 70 million, respectively, the implied enterprise value equates to 6.6 times 2011 EBITDA, and 9.3 times 2011 EBIT.

The acquisition is expected to complete in the fourth quarter of 2012, subject to customary completion conditions including the approval of certain competition authorities. The EUR 240 million cash consideration payable for the acquisition will be funded from a new EUR 250 million two year committed bank debt facility.

TAPPI
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