The Boards of Directors of Munksjö Oyj and Ahlstrom Corporation announce the combination of two companies through a merger.
The combination will create a global leader in sustainable and innovative fiber-based solutions with preliminary combined annual net sales of approximately Euro 2.2 billion and adjusted EBITDA of Euro 249 million. The combined company will have approximately 6,200 employees as well as production in 14 countries.
Annual cost synergies are estimated to be approximately Euro 35 million. The cost synergies are expected to be gradually realised over two years following completion of the combination with a more pronounced impact expected from the 4Q 2017.
The combination will be implemented as a statutory absorption merger whereby Ahlstrom will be merged into Munksjö. The combination is expected to be completed in the beginning of the 2Q 2017.
Peter Seligson, Chairman of the Board of Munksjö, commented: "After the very successful integration of our acquired businesses during the past years and strong operating performance, the combination with Ahlstrom is a natural first step in the execution of our growth strategy, combining two leading businesses into one strong engine for performance and growth. The combined company will be positioned for strong long term-financial returns partly through the significant communicated cost synergies but mainly through enhanced future competitiveness and growth opportunities."
Hans Sohlström, Chairman of the Board of Ahlstrom, continued: "During the past two years the Ahlstrom management has executed a very focused and successful business turn-around by shedding costs and by focusing on commercial excellence with new products and value adding solutions for our customers. The financial results speak for themselves. The combination now enables us to directly jump into a growth mode with a much stronger balance sheet and greater earnings potential which will benefit our shareholders and our customers as well as other stakeholders. We will together be able to leverage several strategic advantages and we will focus on shareholder returns through increased profits as well as profitable global growth initiatives in the area of sustainable and innovative fiber-based solutions."