THE WHAT? Mondi has announced that it has agreed to sell its personal care components business to Nitto Denko Corporation for an enterprise value of €615 million.

THE DETAILS Once the deal is tied up, the remaining portion of Engineered Materials will be merged into the Flexible packaging business unit, Mondi said. The transaction is subject to clearance by the relevant competition authorities and is expected to close in the second half of the year.

“We are pleased to have agreed the sale of PCC to Nitto, knowing they will be great owners of the business,” commented Mondi Group Chief Executive Officer, Andrew King. “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. We remain excited by our opportunity to further serve our customers with innovative solutions that are sustainable by design.”

THE WHY? Mondi said in a statement that its focus to grow in packaging and the limited overlap of PCC with the rest of its business led it to conclude that the next phase of PCC’s development will be better undertaken outside of the group. The proceeds from the sale will be used for ‘general corporate purposes’.