Dec 08, 2009. /Lesprom Network/. Arctic Paper acquires 100% of the shares of Grycksbo Paper Holding AB, sole owner of the paper mill Grycksbo Paper, located near Falun in central Sweden. Transfer of Grycksbo shares to Arctic Paper will take place on March 1, 2010. With the purchase, Arctic Paper increases its production capacity to more than 800,000 tons per year, the company said in a press release received by Lesprom Network. Grycksbo Paper has an annual production capacity of 260,000 tons of coated fine paper and is characterized by high efficiency in terms of both production and energy consumption. Since early 2009 Grycksbo has been producing part of the Arctic branded product range on behalf of Arctic Paper. This already occupies one fourth of Grycksbo’s capacity. “Our strategy is growth, both organically and by acquisitions”, says Michal Jarczynski, CEO of Arctic Paper SA. “It is also our strategy to hold strong positions in both the coated and uncoated European fine paper market, and we have been interested in acquiring Grycksbo for a long time.” “Arctic Paper is financially strong," Jarczynski continues. "In October this year, we had a successful listing on the Warsaw Stock Exchange. Our industry sector has had some difficult years recently and profitability has generally been weak. However, Arctic Paper is highly profitable and our sales are growing. After the third quarter this year we announced a very strong financial result.” “With this acquisition, we will expand our product range and further broaden our array of strong brands. Arctic Paper will even further strengthen its position as one of Europe’s leading producers of fine paper and bulky book paper," says Hans Karlander, Marketing and Sales Director of Arctic Paper. ”When Accent acquired Grycksbo Paper in 2006, the idea was to be active in the restructuring of the fine paper industry. Grycksbo was too small as a stand alone company going forward. Therefore Grycksbo Paper fits very well into the Arctic Paper family. In addition, Grycksbo will have better access to the capital market, being part of a publicly listed company. This deal brings Grycksbo and its employees the best possible structure to meet the future”, says Jan Ohlsson, CEO of Accent Equity Partners AB.