Vienna -- Paper and packaging company Mondi Group is to acquire 93.4 percent of the shares of packaging group Nordenia International AG for Euro 240 million ($294 million).
Mondi supplies some paper products into the urethanes sector, with Mondi Extrusion Coatings, offering process liners for flexible polyurethane foam production, while its Mondi Belcoat business supplies paper facings for production of rigid foam insulation.
Both Mondi and Nordenia have major businesses in consumer packaging.
To buy Nordenia, Mondi will also assume Euro 398 million of debt from current owners Oaktree Capital Management LP.
Nordenia, which supplies consumer packaging and hygiene components, has 12 plants in seven countries across Europe, North America and Asia, and is currently building a greenfield plant in China, expected to begin operating in early 2014.
The deal should be completed in the fourth quarter of 2012, subject to conditions including the approval of certain competition authorities, said a 11 July Mondi statement.
"The acquisition of Nordenia offers Mondi Group a unique opportunity tocreate a leading consumer packaging business, build on long termcustomer relationships across both businesses and establish a platformto expand further in high-growth emerging markets," said David Hathorn, Mondi chief executive, in the statement.
Consumer packaging forms about 60 percent of Nordenia's revenue, and includes reclosable bags, stand-up pouches, advanced films and laminates mainly for fast moving consumer goods. Hygiene components form the rest of Nordenia's revenue, and include nappy components and film-based feminine hygiene release liner.
Mondi's consumer packaging business produces pre-made bags, re-closable bags, stand-up pouches and advanced films and laminates, primarily for the packaging of consumer goods.
For fiscal 2011, Mondi's consumer packaging businesses generated revenues of Euro 281 million, earnings (EBITDA) of Euro 30 million.