Dec 31, 2008. /Lesprom.com/. Sappi Limited had completed the acquisition of the coated graphic paper business of M-real, a Finnish board and paper manufacturer, for Euro 750 million, subject to purchase price adjustments for net debt and working capital, Sappi Ltd. said in a statement received by Lesprom Network. M-real's coated graphic paper business (other than in respect of M-real's South African business), including brands and know-how, as well as four coated graphic paper mills - at Kirkniemi and Kangas in Finland, Stockstadt in Germany and Biberist in Switzerland - have now become part of the Sappi Fine Paper Europe operations. M-real's Husum PM8 Mill in Sweden and Aanekoski PM2 Mill in Finland are, as of 01 January 2009, contract producers for Sappi under supply agreements. Long term supply agreements for wood, pulp and other services have also taken effect. The acquisition was financed through a combination of equity, assumed debt, the cash proceeds from a fully subscribed rights offering and a vendor note. All conditions precedent, including clearance from the relevant competition authorities, have been met. The main benefits of the acquisition include: - Enhancement of Sappi's position in the coated fine paper sector in Europe and globally. - Expansion of Sappi's woodfree coated product offering and customer base, as well as the addition of the strong brands and market strength of M-real's magazine paper. - Increase of Sappi's European graphic paper capacity from 2.6m tons/annum to 4.5m tons/annum. - Expected realization of significant synergies. We estimate total annual synergies of approximately Euro 120 million which should be realizable in full within three years and without material capital investments.