MONDI PLC - Mondi to divest its Personal Care Components business

Mondi to divest its Personal Care Components business

Mondi plc
(Incorporated in England and Wales)
(Registered number: 6209386)
LEI: 213800LOZA69QFDC9N34

LSE share code: MNDI           ISIN: GB00B1CRLC47
JSE share code: MNP

This announcement contains inside information.

17 February 2022

Mondi to divest its Personal Care Components business

Mondi plc (‘Mondi’ or the ‘Group’) is pleased to announce that it has entered into an agreement
to sell its Personal Care Components business (‘PCC’) to Nitto Denko Corporation (‘Nitto’) for
an enterprise value of €615 million, which is also the approximate cash consideration payable
to Mondi at completion (the ‘Transaction’).

Mondi’s strategic focus to grow in packaging and the limited overlap of PCC with the rest of
its business, has led Mondi to conclude that the next phase of PCC’s development will be
better undertaken outside of the Group.

PCC, part of the Group’s Engineered Materials business unit, manufactures a range of
components for personal and home care products needed in everyday life such as diapers,
feminine care, adult incontinence and wipes. For the financial year to 31 December 2020, PCC
generated underlying EBITDA of €42 million.

Nitto is a leading global manufacturer of high functional materials for electronics, mobilities
and human life applications following its ‘Global Niche Top Strategy’, headquartered in Japan
and listed on the Tokyo Stock Exchange. Nitto’s acquisition of PCC is aligned with its stated
mid-term management plan ‘Nitto Beyond 2023’, targeting growth in the field of human life.
Following the planned completion of the Transaction, the remaining portion of Engineered
Materials, namely Functional Papers and Films, will be merged into the Flexible Packaging
business unit. This will strengthen integration along the kraft paper value chain and foster
innovation to continue developing functional papers with the necessary barriers to meet
increasing customer demand for sustainable packaging.

Commenting on the Transaction, Andrew King, CEO of Mondi, said:
“We are pleased to have agreed the sale of PCC to Nitto, knowing they will be great owners
of the business. By simplifying our portfolio, the Transaction will enable us to focus on our core
packaging and paper businesses and enhance our ability to pursue our strategic priority to
grow in sustainable packaging. We remain excited by our opportunity to further serve our
customers with innovative solutions that are sustainable by design.”
The Transaction is subject to competition clearance and other customary closing conditions,
with completion expected in the second half of 2022. The proceeds received from the
Transaction will be used for general corporate purposes in line with the Group’s capital
allocation policy.


Enquiries
Investors/analysts:
Clara Valera                                                  +44 193 282 6357
Mondi Group Head of Strategy and Investor Relations
Media:
Kerry Cooper                                                   +44 788 145 5806
Mondi Group Head of External Communication

Richard Mountain (FTI Consulting)                              +44 790 968 4466


Additional information
The Transaction constitutes a class 2 transaction for the purposes of the UK Financial Conduct
Authority’s Listing Rules. For the year ended 31 December 2020, PCC generated underlying
profit before tax (before special items) of €16 million and a loss before tax (after special items)
of €19 million. The gross assets of PCC as at 30 June 2021 were €435 million.

About Mondi
Mondi is a global leader in packaging and paper, contributing to a better world by making
innovative packaging and paper solutions that are sustainable by design. Our business is
integrated across the value chain – from managing forests and producing pulp, paper and
plastic films, to developing and manufacturing effective industrial and consumer packaging
solutions. Sustainability is at the centre of our strategy and intrinsic in the way we do business.
We lead the industry with our customer-centric approach, EcoSolutions, where we ask the
right questions to find the most sustainable solution. In 2020, Mondi had revenues of €6.66
billion and underlying EBITDA of €1.35 billion.
Mondi has a premium listing on the London Stock Exchange (MNDI), and a secondary listing
on the JSE Limited (MNP). Mondi is a FTSE 100 constituent and has been included in the
FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index
Series since 2007.


Sponsor in South Africa: Merrill Lynch South Africa Proprietary Limited t/a BofA Securities.

Date: 17-02-2022 09:00:00
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