MONDI, the dual-listed international paper and packaging group, has bought 93,4% of the outstanding share capital of consumer packaging company Nordenia International from funds managed by Oaktree Capital Management and other minority shareholders for ?240m in cash.

Mondi, which is listed in Johannesburg and London, said on Wednesday it would also assume ?398m of debt and debt-like liabilities. This implies an enterprise value for 100% of Nordenia of ?655m.

Nordenia has 12 operating facilities in seven countries across Europe, North America and Asia. It is also building a wholly owned greenfield plant in China, which is expected to begin operating by early 2014.

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

He said the group would build on long-term customer relationships across the Mondi and Nordenia businesses and establish a platform to expand in high-growth emerging markets.

Based on Nordenia's earnings before interest, tax, depreciation and amortisation (Ebitda) for the year ended December, the implied enterprise value is equal to 6,6 times last year's Ebitda.

Mondi said the ?240m cash consideration would be funded from a ?250m two-year committed bank debt facility.

The acquisition is expected to be completed in the fourth quarter of this year, subject to conditions that include the approval of competition authorities.

allixm@bdfm.co.za