Aug 28, 2012. /Lesprom Network/. Munksjo and Ahlstrom Corporation have agreed on combining Ahlstrom’s Label and Processing business area with Munksjo, forming a new company to be named Munksjo Corporation. The new company will be a global leader in specialty paper with combined net sales in 2011 of Euro 1.3 billion. The new company will have approximately 3,300 employees at 16 production sites in Europe, Brazil and China, as Munksjo said in the press release received by Lesprom Network. “The planned combination is the natural next step in Munksjo’s strategy to become a leading, global specialty paper company, following the acquisition of ArjoWiggins’ Decor, Abrasives, Thin Print Papers and Fine Art businesses in 2011. It will lead to strengthened competitiveness and efficiency and bring added growth opportunities to the company, organically as well as strategically”, says Jan Astrom, President and CEO of Munksjo. Following the proposed transaction Munksjo.s current shareholders will own approximately 29% of the new company and Ahlstrom’s current shareholders will own approximately 50%. Institutional investors Varma and Ilmarinen as well as Ahlstrom and EQT III have been offered shares in a Euro 100 million directed share issue. The directed share issue is fully subscribed. The new company has fully committed credit facilities with a net debt of approximately Euro 300 million at closing, leading to a capital structure well in line with the peer group. Jan Astrom, the President and CEO of Munksjo AB, will become the President and CEO of the new company. Peter Seligson has been appointed Chairman of the intermediate Board of Directors of Munksjo Corporation. The head office will be located in Stockholm, Sweden and the shares will be listed on NASDAQ OMX Helsinki. A future listing on NASDAQ OMX Stockholm is being considered. Munksjo is a specialty paper company headquartered in Stockholm, Sweden. The company’s majority owner is the private equity fund EQT III. In 2011, Munksjo’s net sales were Euro 645 million (net sales are adjusted for Munksjo’s acquisition of operations from ArjoWiggins, which was completed in March 2011). Munksjo employs approximately 1,800 and has ten productionfacilities in Europe and Asia. Its main products include Decor papers, Abrasive backings, Electrotechnical papers and long-fibre Specialty Pulp.