OpenGate Capital, a global private equity firm based in Los Angeles, USA, announced recently it has signed an agreement to sell one of its portfolio companies, Kotkamills Oy, to MB Funds, an independent Finnish private equity firm focused on acquisitions in the Nordic market. Kotkamills is located in Kotka, Finland and is a manufacturer of specialty papers and wood-based products. Financial terms were not disclosed.
OpenGate Capital acquired Kotkamills from Stora Enso in July of 2010. From the onset of the acquisition, OpenGate viewed Kotkamills as a business with tremendous potential for growth and renewed profitability.
Julien Lagrèze, Partner at OpenGate Capital who oversees all European investment activity commented, “Since 2010, Kotkamills has undergone a series of transition, stabilization and growth initiatives that enabled the business to adjust to changes in the paper market, respond to demands for eco-friendly products, and mitigate against the continual decline in magazine papers. Through the leadership of Kotkamills’ CEO, Tuija Suur-Hamari, the entire Kotka staff, and our strategic partner, Powerflute Oy, the business of Kotkamills today is extremely well positioned for its next phase of growth under the stewardship of MB Funds.”
