OREANDA-NEWS. Mondi Group has signed an agreement for the acquisition of 100% of the outstanding share capital of Ascania nonwoven Germany GmbH (“Ascania”) from Schloss Neugattersleben Group, a private equity investment group for a total consideration of EUR54m on a debt-and-cash-free basis (5.7x LTM EBITDA).

Ascania is a producer of nonwoven fabrics and nonwoven composites used as components in personal care products. The business operates from one site based in Aschersleben, Germany. Ascania is a key supplier of nonwovens for diaper elastic laminates to Mondi. The business 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 EUR53m and EBITDA of EUR9.5m.

Commenting on the acquisition, David Hathorn, Chief Executive of Mondi Group, 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 2015.