Sappi Limited, a
leading global producer of dissolving wood pulp, speciality and packaging
papers, graphic (printing and writing) paper and biomaterials, today announced
that it had signed an agreement to acquire the speciality paper business of
Cham Paper Group Holding AG (CPG) for CHF146.5 million (approximately $149
million).
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. We expect the acquisition to be completed during the first
calendar quarter of 2018.
The
main benefits of the acquisition include:
- Supports Sappi’s diversification strategy and 2020vision to grow in higher margin growth segments
- Strengthens Sappi Europe’s speciality and packaging papers footprint and skills; adds 160,000 tons of speciality 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 speciality paper capacity at our Somerset, Maastricht and Alfeld Mills
- Unlocks the growth potential of the CPG speciality paper business
Commenting on the transaction Steve Binnie, Chief
Executive Officer of Sappi Limited, said: “This acquisition further strengthens
Sappi’s speciality 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 speciality paper market. I am very pleased that
we have taken another signification step towards realizing our Vision2020
goal.”
Berry Wiersum, CEO
Sappi Europe stated: “We are
very excited about the possibilities this transaction opens up for Sappi as
well as for Cham’s highly respected business. The products and brands which
have been acquired are an excellent complement to our market offering, enabling
us to offer our existing, as well as new customers in Europe, North America and
globally, a broader range of products coupled with excellent customer service.”
The speciality paper
business of CPG will continue to operate separately and independently from
Sappi until clearances from the authorities are obtained.
