May 04, 2011. /Lesprom Network/. Powerflute Oyj has agreed to dispose of its interests in the Papierfabrik Scheufelen, which represent the Powerflute’s entire interest in coated woodfree papers and the whole of the Graphic Papers business segment, to Paper Excellence BV, a privately owned pulp and paper producer, for total consideration of Euro 38.5 million, comprising cash consideration of Euro 32.5 million payable in two instalments (Euro 25 million at completion and Euro 7.5 million on 31 October 2011) and the assumption of Euro 6 million of debt by Paper Excellence, as the company said in a press release received by Lesprom Network. Commenting on the disposal, Dermot Smurfit, Chairman of Powerflute said: “We are pleased to announce the disposal of Scheufelen to Paper Excellence and believe this represents a successful outcome for both the customers and employees of Scheufelen and for Powerflute’s shareholders. Scheufelen will benefit as part of an integrated pulp and paper group and will continue to prosper under new ownership. Powerflute has achieved a significant return on its investment in a little over two years – a strong validation of our business strategy. On completion of the disposal, Powerflute will be debt free on a net basis and will have the capital structure and resources to continue to pursue its strategy of seeking opportunities to acquire underperforming businesses in the paper and packaging sectors.” After the divestment of Scheufelen, Powerflute’s only mill is the Savon Sellu mill in Finland.