Ahlstrom-Munksjö hascompleted the acquisition of MD Papéis’ Caieiras specialty paper mill in Brazil for a debt free purchase price of about Euro 98 million, as the company says in the press release received by Lesprom Network.
The acquired business had net sales of about Euro 76 million and comparable EBITDA of Euro 12 million in 2017. Annual synergy benefits of up to Euro 6 million are estimated, mainly arising from optimization of overlapping businesses.
The Caieiras product offering is an excellent match for Ahlstrom-Munksjö with 80% of sales being in line with the company’s current portfolio. The plant gives access to local production of decor paper, thus strengthening Ahlstrom-Munksjö’s offering and partnership with existing customers, who have so far relied on imports.
Ahlstrom-Munksjö is already a global leader in tape materials, serving both local and global customers and this position is further strengthened through the acquisition. In addition, production and delivery capabilities as well as competitiveness are improved by combining Caieiras with the company’s operation in nearby Jacarei.
Ahlstrom-Munksjö operates three plants near Sao Paolo, employing over 700 people with revenues of approximately of Euro 200 million following the acquisition.