Jul 28 2015
Stora Enso to divest its Barcelona recycled fibre mill in Spain
Helsinki, Finland, 2015-07-27
Stora Enso has signed an agreement to divest its Barcelona mill, which produces recycled-fibre based consumer board, to the private equity fund Quantum. The transaction is in line with Stora Enso’s strategy to focus its consumer board offering on high quality virgin-fibre products.
The initial cash consideration for the divestment of the shares is approximately EUR 10 million, subject to customary closing day adjustments. The transaction has no material income statement impact and is expected to be completed in the fourth quarter of 2015, subject to regulatory approvals.
“Stora Enso is focusing its consumer board offering on high quality virgin-fibre products. The Barcelona mill is the only recycled-fibre based mill in our Consumer Board division. Despite positive results development in recent months, the Barcelona mill requires further development effort and investment if it is to remain on a profitable path. I believe that the mill can operate more efficiently under the new ownership,” says Jari Latvanen, Head of Consumer Board division.
Based on the annual figures for 2014, the divestment is expected to reduce Stora Enso’s annual sales by EUR 117 million and simultaneously decrease Stora Enso’s annual board production capacity by approximately 195 000 tonnes. The transaction does not have material impact on Stora Enso’s operational EBIT and cash flow going forward and it will improve operational EBIT and EBITDA margins slightly. The Barcelona mill employs approximately 220 people.
Quantum Capital Partners is a German Private Equity fund headquartered in Munich. Quantum focuses on corporate spin-offs and carve-outs in which the acquisition target has a turnover between EUR 20 and 500 million and can benefit from Quantum’s operational experience. Quantum has completed a series of successful transactions with leading global corporations such as BOSCH, BASF and AIRBUS Group. Quantum’s current portfolio consists of seven companies, with a combined turnover of some EUR 350 million. Quantum commands a newly established fund of more than EUR 57 million and is an active investor in the industry, having completed five transactions in 2014 and two in 2015. www.quantum-capital-partners.com/
About Stora Enso
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. www.storaenso.com
About the Barcelona Mill
“Barcelona Mill produces White Lined Chipboard (WLC) based on recycled fibres for such uses as packaging of detergent and household products, confectioneries, food, pharmaceuticals and graphical products.
The high-quality triplex grades produced in Barcelona are mainly made from recovered paper from printers, customers, household collection and used beverage cartons.
The mill employs abo ut 200 people and has an annual production capacity of 170,000 tonnes of board.
In addition to board production, the facility also encompasses an innovative recycling plant, enabling full recovery of all of the materials used in the beverage cartons, including the fibre, plastic and aluminium.
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Barcelona Mill is located in Castellbisbal, about 20 kilometres northwest of the city of Barcelona in the northeast of Spain, near the Llobregat River, with an area of 120,000 square metres.