Mar 15, 2012. /Lesprom Network/. PaperlinX has agreed to sell its Italian business, Polyedra, to Lecta, the European Paper manufacturer for Euro 45 million. The purchase price represents over 90% of book value and, after transaction costs and repayment of related debt in Italy, is expected to release approximately Euro 13 million (A$17 million) in net proceeds, as the company said in a press release received by Lesprom Network. Polyedra contributed EBITDA of Euro 4 million in the 12 month period ending December 2011. The sale is expected to close within 90 days, subject to regulatory approvals and a final value audit. PaperlinX CEO, Toby Marchant, said, “We achieved fair value in today’s market from a strategic investor and, importantly, generated a substantial portion of the A$20m cash required to immediately implement the restructuring of Continental Europe and Corporate Head Office.” The multi phase restructuring of PaperlinX’s business was a headline issue in the Interim Results announcement on February 23rd. The company expects savings of A$61m by FY14 from the ongoing restructuring programme. “Given the continued uncertainty of world paper markets, aggressive cost reduction is our most important initiative for the next two years. Every 1% reduction in our cost to sales ratio represents some A$40m. We are aiming for a 3% total cost reduction, half of which will be generated from the current plans by FY14”, said Marchant. PaperlinX is one of the world's leading global merchants of paper, communication materials and diversified products and services.