In its unaudited interim financial information for the six months ended 30 June 2014, Corenso reported EBITDA of Euro 10.6 million on revenues of Euro 97.5 million. Powerflute considers that during the second half of the year Corenso has continued to trade in line with the trends outlined in the Admission Document published on 30 September 2014.
After taking into account the preliminary valuation attributed to minorities of Euro 8.1 million and the initial estimate of net cash acquired and adjustments required to net working capital of Euro 20.4 million, the price paid for Corenso at closing was Euro 102.3 million. The final purchase price is subject to possible further adjustment as described in the Admission Document published on 30 September 2014.
Commenting on the acquisition, Dermot Smurfit, Chairman of Powerflute said: "We are delighted to complete the acquisition of Corenso and look forward to working closely with the management, customers and suppliers to further strengthen its position as a leading international supplier of high performance cores and coreboard. The acquisition of Corenso is a major step for Powerflute and is consistent with our strategy of pursuing opportunities for growth and development in attractive, specialty paper and packaging markets. Following completion of the integration of Corenso, Powerflute will be a significantly larger group which we believe will provide us with a strong foundation from which to pursue further acquisition opportunities in due course."
Powerflute is a paper and packaging group. The Group operates a paper mill in Kuopio, Finland which produces a specialised form of semi-chemical fluting made from locally sourced birch.
Corenso is a leading international manufacturer of high performance cores and coreboard operating with coreboard mills in the United States and Europe and a network of core producing facilities in Europe, North America and China.
