**Indonesian Paper Company APP Acquires for 422.1 Billion Won**
Morgan Stanley Private Equity (MS PE) has completed the sale of MSS Holdings, which owns Ssangyong C&B and Monalisa, to the Indonesian paper company Asia Pulp & Paper (APP) for over 400 billion won. This transaction is notable in the domestic mergers and acquisitions (M&A) market as a local small and medium-sized enterprise is acquired by a foreign strategic investor.
MS PE announced on the 7th that it has finalized the sale of MSS Holdings. Citigroup Global Markets Securities acted as the sales advisor.
MSS Holdings is a special purpose company (SPC) holding a 50.99% stake in Monalisa, a listed company, and a 100% stake in the unlisted company Ssangyong C&B. It also wholly owns subsidiaries such as MSS Pulp, MSS Logistics, MSS Global, and MSS HRM. MSS Holdings is a company that has vertically integrated the production, sales, and distribution of hygiene products like tissues, wet wipes, sanitary pads, and diapers.
MS PE acquired Monalisa and Ssangyong C&B for a total of 250 billion won in 2014. With the completion of this sale process, they have successfully recouped their investment after about 10 years. APP, which acquired MSS Holdings, is a global pulp and paper manufacturer founded in 1972. It sells pulp, tissues, and various paper and packaging products in over 150 countries. APP has decided to retain MSS Holdings’ employees and executives.
Jeong Hoe-hoon, the representative of MS PE, said, “We are very proud of the many achievements made during the period with MSS Holdings, and we are pleased to be able to support the company’s transformation and growth in the future. MSS Holdings will embark on another journey of development with the global pulp and paper group through this shareholder transition.”
Nitishan Grover, CEO of APP Tissue International, emphasized, “Through APP’s operational expertise and global network, we will introduce MSS Holdings to the global market and improve its productivity and cost competitiveness.”
MS PE is the Asian PE investment arm of Morgan Stanley and focuses on buyout investments. In March, it acquired the K-beauty company Skinidea, and in May, it sold Jeonju Paper and Jeonju One Power.