SEOUL -- Morgan Stanley Private Equity Asia (“MSPEA”) today announced the successful closing of the sale of MSS Holdings (“MSS”), a portfolio company of a private equity fund that MSPEA manages, to Asia Pulp & Paper Group (“APP”).

MSS is a manufacturer of a wide product portfolio including tissue, wet tissue, feminine hygiene and diaper products in Korea, with lifestyle brands, CODI and Monalisa. MSS operates under a unique vertically integrated business model, with capabilities across the value chain, from procurement and manufacturing to sales and distribution.

“We are proud of MSS’s accomplishments during our ownership and are pleased to have overseen the company during its transition and growth. 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 & paper group,” said Michael Hwey Hoon Chung, head of MSPEA Korea.

“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,” said Nishant Grover, CEO, Tissues International, APP, “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 various paper and packaging products in over 150 countries.

With an over 30-year track record, MSPEA is the Asian private equity investment arm of Morgan Stanley. MSPEA’s recent track record in Korea includes the acquisition of K-beauty brand operator Skinidea in March 2024 and the sale of leading packaging paper and renewable energy businesses, Jeonju Paper and Jeonju One Power in May 2024.

Citi acted as an exclusive financial advisor to MSPEA on the transaction.