Britain's Mondi to sell personal care unit for nearly $700 mln (updated)

NITTO DENKO

17/02/2022 08:13

(Adds details, analyst comments)
    Feb 17 (Reuters) - British paper and packaging firm Mondi
 MNDI.L  said on Thursday it would sell its personal care
components business to Japan's Nitto Denko Corp  6988.T  for 615
million euros ($699 million), as it seeks to focus on building
its packaging division.
    The FTSE 100-listed  .FTSE  company said the sale reflected
its desire to expand in packaging and the "limited overlap" of
personal care components (PCC) with the rest of its business,
sending its shares up 1% to 1,935 pence as of 08:05 GMT.
    The PCC business, which produces components used in baby
wipes, diapers and other personal and home care products, had
reported core underlying earnings of 42 million euros for 2020.
    For Nitto Denko, which makes a range of materials used in
electronics, mobility and construction, the deal aligns with its
goals to expand in "human life" products.
    Analysts at Jefferies called the sale a "positive" for
Mondi, adding that "the PCC business has been a drag on
performance & management time in recent years."
    
($1 = 0.8804 euros)

 (Reporting by Muhammed Husain in Bengaluru; Editing by Rashmi
Aich and Subhranshu Sahu)
 ((Muhammed.Husain@thomsonreuters.com;))