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. Sappis expects the acquisition to be completed during the first quarter of 2018.
Benefits of the acquisition include:
- Supports Sappi’s diversification strategy and 2020 vision 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
Berry Wiersum, CEO Sappi Europe, says, “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.