Ahlstrom-Munksjö to acquire the Caieiras specialty paper mill in Brazil

Posted April 24, 2018
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Ahlstrom-Munksjö has entered into an agreement to acquire MD Papéis’ Caieiras specialty paper mill in Brazil of the Formitex Group, an industrial conglomerate active in the paper, chemicals and panel board industries. The transaction is expected to be completed during the 3Q 2018 and is subject to customary completion terms, including merger clearance from the relevant competition authorities.

The annual net sales of the business to be acquired are approximately Euro 80 million and comparable EBITDA approximately Euro 13 million in 2017. The debt free purchase price is approximately Euro 100 million. Annual synergy benefits of up to Euro 6 million are estimated, mainly arising from optimization of overlapping business. Banco Citibank S.A. has agreed and committed to provide financing for the acquisition.

The Caieiras product offering is an excellent match for Ahlstrom-Munksjö with 80% of sales being in line with Ahlstrom-Munksjö’s current product and solution portfolio. The acquisition significantly strengthens Ahlstrom-Munksjö’s offering and production platform in the region, and provides attractive growth opportunities, synergies and further production optimization opportunities for the longer term.

The Caieiras mill is located in the vicinity of Ahlstrom-Munksjö’s existing production plants in Jacarei, part of the Industrial Solutions business area, and in Louveira, part of the Filtration and Performance business area. The mill gives access to local production of decor paper, thus strengthening Ahlstrom-Munksjö’s service offering and partnership with existing customers, which so far has relied on imports.

Ahlstrom-Munksjö becomes a global leading producer in decor paper, and the mill is a competitive platform for further growth in South America.



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Happy
25.04.18 00:26
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