UPM has completed the acquisition of Myllykoski Oyj and Rhein Papier GmbH ("Myllykoski"). The EU Commission approved the acquisition on 13 July 2011.
Myllykoski Oyj and Rhein Papier GmbH consist of seven publication paper mills in Germany, Finland and the United States. Their total annual paper production capacity is 2.8 million tonnes. The transaction also includes Myllykoski Oyj’s 0.8 % stake in the Finnish energy company Pohjolan Voima Oy.
The enterprise value of all the businesses acquired is approximately EUR 900 million. UPM will report a one-off gain of approximately EUR 40 million in the third quarter. UPM estimates that the transaction will have an immediate positive impact on cash flow and a positive impact on earnings per share from 2012. UPM has announced a preliminary estimate of annual cost synergies in excess of EUR 100 million.
For the financing of the acquisition, UPM will issue five million new UPM shares to the direct and indirect owners of Myllykoski Oyj and Rhein Papier GmbH and has drawn EUR 800 million in long term debt.
In its Interim Report to be issued on 3 August 2011, UPM will publish pro forma financial information on the transaction for the first half of the year.
