Mondi offloads PCC business to Nitto Denko

Packaging and paper group Mondi has agreed to offload its personal care components business to Nitto Denko for an enterprise value of €615.0m.

Mondi said on Thursday that its strategic focus was to grow in packaging and given the "limited overlap" of the division with the rest of its business, it decided that the next phase of the unit's development would be better if "undertaken outside of the group".

Following the completion of the disposal, the remaining portion of Mondi's engineered materials unit, namely its functional papers and films arms, will be merged into its flexible packaging business unit.

Chief executive Andrew King 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."