Mondi Expands In Europe With Nordenia Acquisition

VENTURES AFRICA – South Africa’s paper and packaging group Mondi has said its acquisition of German packaging company Nordenia International in addition to strengthening the group’s European businesses, will also facilitate its expansion into high-growth emerging markets in Eastern Europe and Asia.

The group also announced its readiness to acquire 93.4 percent of Nordenia’s outstanding share capital from funds managed by Oaktree Capital Management and other minority shareholders for $310 million.

Mondi would also assume $514 million debt and “debt-like liabilities”, which the group said implied an enterprise value for 100 percent of the company of $846 million.

In an interview with BusinessDay on Wednesday, Mondi CEO David Hathorn 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 International supplies consumer packaging and hygiene products components. The company has 12 operating facilities in Germany, the US, Poland, Hungary, Russia, China and Malaysia; all of which are fully invested.