The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland, as well as all brands and know-how. It will be funded through internal cash resources. The transaction is conditional on the approval from certain competition authorities. The acquisition is expected to be completed in Q1 2018.
The main benefits of the acquisition include:
- Supports Sappi’s diversification strategy and 2020 vision to grow in higher-margin segments
- Strengthens Sappi Europe’s speciality and packaging papers footprint and skills; adds 160,000 tonnes of specialty paper to our capacity
- Increases Sappi’s relevance in speciality papers, opening up new customers and markets to Sappi’s existing products and generating economies of scale and synergies
- Gaining greater share-of-wallet with valued brand owners; accelerating innovation and new product development
- Improved near-term profitability and serve as platform for organic growth and further acquisitions. Will add €183 million of sales and approximately €20 million of EBITDA before taking into account synergies
- Builds on the investments currently underway to increase specialty paper capacity at our Somerset, Maastricht and Alfeld Mills
- Unlocks the growth potential of the CPG specialty paper business
Commenting on the transaction, Steve Binnie, CEO of Sappi says, “This acquisition further strengthens Sappi’s specialty paper business both in Europe and globally by combining Cham’s strong brands and assets with Sappi’s global reach. This transaction will increase profitability and unlock the significant growth and innovation potential inherent within the specialty-paper market. I am very pleased that we have taken another signification step towards realizing our Vision2020 goal.”
The specialty-paper business of CPG will continue to operate separately and independently from Sappi until clearances from the authorities are obtained.
More info: www.sappi.com