South Africa's Mondi buys 93 percent of Nordenia for $782 million

JOHANNESBURG Wed Jul 11, 2012 2:57am EDT

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JOHANNESBURG (Reuters) - South Africa's Mondi Group (MNDJ.J) plans to buy 93.4 percent of German packaging firm Nordenia International AG, it said on Wednesday, in a $782 million deal that bolsters the paper maker's consumer packaging business.

Under the deal, Mondi will pay 240 million euros ($294.13 million) in cash and take on Nordenia's 398 million euros debt, valuing the whole company at 655 million euros.

Nordenia supplies consumer packaging solutions and hygiene components with 12 facilities located in seven countries across Europe, North America and Asia.

"The acquisition of Nordenia offers Mondi Group a unique opportunity to create a leading consumer packaging business," said David Hathorn, Mondi Group chief executive.

The deal, which is subject to regulatory approvals, is expected to be finalized in the fourth quarter of the year, Mondi said.

Based on Nordenia's full-year earnings before interest, taxes, depreciation and amortization of 99 million euros, the implied enterprise value equates to 6.6 times, Mondi said.

Mondi is also listed in London (MNDI.L).

(Reporting by Tiisetso Motsoeneng; Editing by Ed Stoddard)

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