Munksjö and Ahlstrom Corporation have agreed on combining Ahlstrom’s Label and Processing business area with Munksjö, forming a new company to be named Munksjö Corporation. The new company will be a global leader in specialty paper with combined net sales in 2011 of EUR 1.3 billion. The new company will have approximately 3,300 employees at 16 production sites in Europe, Brazil and China.
“The planned combination is the natural next step in Munksjö’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 Åström, President and CEO of Munksjö.
Following the proposed transaction Munksjö´s current shareholders will own approximately 29 percent of the new company and Ahlstrom’s current shareholders will own approximately 50 percent. Institutional investors Varma and Ilmarinen as well as Ahlstrom and EQT III have been offered shares in a EUR 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 EUR 300 million at closing, leading to a capital structure well in line with the peer group.
Trading of the shares in the new company is expected to commence during the first quarter of 2013 on NASDAQ OMX Helsinki.
