It includes the assumption of a €280m bond and €118m other debt and debt-like liabilities.
Following the takeover, Mondi will reorganise its business into four categories: uncoated fine paper (“UFP”), packaging papers, fibre packaging and consumer packaging, with Nordenia operating in the consumer packaging business.
Consumer packaging solutions contribute 60% of Nordenia revenues, and include re-closable bags, stand-up pouches, advanced films and laminates for mainly fast moving consumer goods.
The company said it is expected to deliver pre-tax cost synergies in excess of €15m per annum by 2014, in addition to the potential revenue opportunities created by the combination.
Takeover rationale
In a statement to explain the rationale behind the takeover Mondi Group said it:
· creates a leading consumer packaging business through the combination of Nordenia and Mondi Group’s existing consumer packaging activities.
· enables the group to build on deep, long-term customer relationships across both businesses.
· brings an established platform in high-growth emerging markets. Mondi Group expects to capitalise on Nordenia’s leading technology, product portfolio, customer know-how and manufacturing capability to expand further in these regions.
The consumer packaging business produces pre-made bags, re-closable bags, stand-up pouches and advanced films and laminates and generated revenues of €281m for the year ending 31 December 2011.
The firm said buyout will be funded from a €250m two year committed bank debt facility.
Mondi Group will assume €398m of debt and debt-like liabilities implying an enterprise value for 100% of the company of €655m.
Attractive Nordenia
Nordenia operates 12 facilities located in seven countries across Europe, North America and Asia and plans to begin operating a greenfield plant in China in early 2014.
The firm’s top 10 clients have been customers for 19 years on average and their largest customer, Procter & Gamble, accounted for 37% of revenues in 2011.
