German company acquires Nordenia | News
CAPE GIRARDEAU COUNTY, MO (KFVS)- Nordenia which owns two plants in Cape Girardeau County has a new owner.
In a news release on its website, a German company called Mondi announced that it has acquired Nordenia.
According to Mondi, the new business unit is led by the former Nordenia CEO Ralph Landwehr from the headquarters in Greven, Germany.
Mondi says it completed the purchase Monday, October 1.
Heartland News placed calls to Nordenia and the phone message now refers to the company as Mondi Jackson Incorporated.
It's not clear what impact the sale will have on the company's local facilities or workers, any.
In a statement, the company says that the new acquisition offers "Mondi the unique opportunity to be a leading company in the area of consumer packaging, with a significantly extended product range, high-quality innovative products, and excellent service."
Mondi explained in a press release the motivation behind, and financial effects of the acqusition:
RATIONALE FOR THE ACQUISITION
The acquisition of Nordenia offers significant benefits and opportunities for Mondi Group:
• Creates a leading consumer packaging business through the combination of Nordenia and Mondi Group's existing consumer packaging activities
• Enables the Group to build on deep, long-term customer relationships across both businesses
• Brings an established platform in high-growth emerging markets. Mondi Group expects to capitalise on Nordenia's leading technology, product portfolio, customer know-how and manufacturing capability to expand further in these regions
• Is expected to deliver pre-tax cost synergies in excess of EUR15 million per annum by 2014, in addition to the potential revenue opportunities created by the combination
FINANCIAL EFFECTS OF THE ACQUISITION
• The implied enterprise value of EUR655 million represents 6.6 times 2011 EBITDA4 and 9.3 times 2011 EBIT4
• The combination is expected to result in pre-tax cost synergies in excess of EUR15 million per annum by 2014
• The Acquisition is expected to be underlying earnings enhancing immediately and double digit underlying earnings enhancing by 2014, including cost synergies6
• ROCE for the Acquisition is expected to be in excess of Mondi Group's through-the-cycle target of 13% by 2014, including synergies
• Mondi Group expects to maintain its investment grade credit rating of Baa3/BBB-
• Post the Acquisition, pro-forma 2011 net debt to EBITDA7 is expected to be approximately 1.7 times and Mondi Group will have remaining undrawn committed bank facilities of in excess of EUR500 million
• Mondi Group's dividend policy of 2 to 3 times cover through-the-cycle will be unchanged.
As part of the Acquisition, Mondi Group says they will assume Nordenia's EUR280 million bond, which has a coupon of 9.75% and is due in 2017. Mondi officials say bond holders have an option to put the bond to Mondi Group on completion of the acquisition. Also they say Mondi Group has the option to repay the bond early, subject to a make whole premium during the period to July 2014.
Following the completion of the acquisition, Mondi Group says they will reorganize its Europe & International Division into four businesses.
According to the group, these will be Uncoated Fine Paper ("UFP"), Packaging Papers, Fiber Packaging and Consumer Packaging.
Nordenia will form part of the Consumer Packaging business which will be led by Ralph Landwehr. Further details of the Group's restated historical segmental information will be given at the time of the Group's half yearly results announcement.
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