Morgan Stanley Private Equity Asia (MSPEA) has closed the sale of MSS Holdings (MSS) – a portfolio company of a private equity fund that MSPEA manages – to Asia Pulp & Paper Group (APP).
MSS manufactures tissue, wet tissue, and hygiene products including diapers in Korea, with lifestyle brands, CODI and Monalisa.
It operates under a unique vertically integrated business model, with capabilities across the value chain, from procurement and manufacturing to sales and distribution.
Michael Hwey Hoon Chung, head of MSPEA Korea, said: “With this closing, we believe MSS is well-positioned to embark on the next phase of its development with its new parentage of a globally established pulp and paper group.
Nishant Grover, Chief Executive, Tissues International, APP, said: “We are delighted to welcome MSS to APP and with APP’s global expertise, MSS can offer APP’s global high-quality tissue and hygiene products to Korea, providing Korean consumers with more innovative choices at competitive prices.
“MSS is expected to benefit from APP’s operational expertise and global network. By leveraging its existing brands in Korea, MSS will gain access to international markets and benefit from synergies that will enhance its production efficiency and overall cost competitiveness.
“For APP, the transaction provides a meaningful presence in the Korean tissue and hygiene market, with instant access to iconic consumer brands and a nationwide domestic sales network.”
Founded in 1972 and headquartered in Indonesia, APP is a global pulp and paper manufacturer with sales of pulp, tissues and paper and packaging products in over 150 countries.
