Billerud completes acquisition of UPM's packaging paper operations at Pietarsaari and Tervasaari, Finland

Jun 01, 2012. /Lesprom Network/. Billerud Finland Oy's acquisition of UPM's packaging paper operations at Pietarsaari and Tervasaari is now completed. Billerud Finland Oy is a wholly owned subsidiary of Billerud AB. The purchase price is around Euro 130 million, as the company said in a press release received by Lesprom Network. The acquired operations will be consolidated as of 1 June 2012, and will be included in the Packaging & Speciality Paper business area. In the January–June 2012 interim report, sales of the Billerud Group's market pulp will continue to be reported as a separate business area, that is Market Pulp. As of 1 July 2012, market pulp sales will not be reported separately but will be included in the Packaging and Speciality Paper business area. Financial pro forma information will be published in the January–June 2012 interim report. In 2011, the acquired operations' sales amounted to approximately Euro 220 million, and EBITDA was approximately Euro 18 million (pro forma). Annual depreciation is estimated to be approximately Euro 6.5 million. The transaction is financed through half cash and cash equivalents, half through raising loans within existing credit frameworks. The impact of the acquisition on Billerud's net debt/equity ratio will be +24 percentage points.