Mondi buys German fabrics company for €54m

Packaging and paper group Mondi has agreed to acquire Ascania non-woven Germany from private equity group Schloss Neugattersleben for €54m on a debt-and-cash-free basis.

Ascania, which produces non-woven fabrics and non-woven composites used as components in personal care products, is a key supplier of non-wovens for diaper elastic laminates to Mondi. It employs around 150 people and will be integrated into Mondi’s Consumer Packaging Business Unit.

For the twelve months ended 31 May 2015, Ascania generated unaudited revenues of €53m and earnings before interest, tax, depreciation and amortisation of €9.5m.

Chief executive David Hathorn said: “This acquisition supports the development of our Consumer Packaging business. It will strengthen Mondi’s position as the preferred supplier of hygiene components such as elastic laminates for diapers and enable further growth with innovative products for baby diapers, adult incontinence, femcare and medical applications.”

The transaction remains subject to competition clearance and is expected to complete by the fourth quarter of this year.

At 1045 BST, Mondi shares were down 1.2% at 1,391.57p.