Munksjö to acquire Arjowiggins' decor and abrasives businesses

Dec 14, 2010. /Lesprom Network/. Munksjö intends to acquire the Decor, Abrasives, thin papers and fine arts businesses of Arjowiggins including the mills in Arches (France) and Dettingen (Germany), as the company said in a press release received by Lesprom Network. The purchase price on a debt free basis will be Euro 95 million. Total sales for the acquired businesses are approximately Euro 220 million. An information and consultation process has been launched with the relevant works councils. The acquisition requires approval from the European Commission. With the acquisition Munksjö would form a world leading specialty paper company. “The acquisition is an important step in Munksjö’s growth strategy to become a major player in Decor paper and to grow in profitable niche segments for industrial applications. Acquiring the competency within decor and the new segments will give access to new growth markets for further expansion. It’s a perfect match”, said Jan Åström, President and CEO of Munksjö. “We create enhanced possibilities for future growth, profitability and cash-flow. This makes Munksjö well positioned for our planned IPO which most likely will take place during 2011”, Jan Åström added. Munksjö is an international specialty paper company producing a focused range of high-value-added paper to a selection of industrial sectors. Production facilities are located in Germany, Spain, Norway, China and Sweden. Arjowiggins is a world leading manufacturer of creative and technical paper. The company, head quartered in Pairs, has operations in Europe, North America, Latin America and Asia. Arjowiggins is a wholly owned subsidiary of Sequana, which also owns the paper merchant group Antalis.