Ahlstrom-Munksjö completes the acquisition of Caieiras specialty paper mill in Brazil
AHLSTROM-MUNKSJÖ OYJ PRESS RELEASE OCTOBER 18, 2018 at 9:10
Ahlstrom-Munksjö has completed the acquisition of MD Papéis’ Caieiras specialty paper mill in Brazil for a debt free purchase price of about EUR 98 million*. The acquisition significantly strengthens Ahlstrom-Munksjö’s offering in South America and provides further growth opportunities.
The acquired business had net sales of about EUR 76 million and comparable EBITDA of EUR 12 million in 2017. Annual synergy benefits of up to EUR 6 million are estimated, mainly arising from optimization of overlapping businesses. The agreement was announced on April 24, 2018.
The Caieiras product offering is an excellent match for Ahlstrom-Munksjö with 80% of sales being in line with the company’s current portfolio. The plant gives access to local production of decor paper, thus strengthening Ahlstrom-Munksjö’s offering and partnership with existing customers, who have so far relied on imports.
Ahlstrom-Munksjö is already a global leader in tape materials, serving both local and global customers and this position is further strengthened through the acquisition. In addition, production and delivery capabilities as well as competitiveness are improved by combining Caieiras with the company’s operation in nearby Jacarei.
Daniele Borlatto, EVP of Industrial Solutions Business Area, comments: “The Caieiras business is an excellent addition to our global platform, and drives our ambition to maintain a leading position in selected niches of the global fiber-based solutions market that offers growth. Our existing as well as new specialty paper customers will benefit from a stronger offering coupled with our well-established excellent customer service. This transaction is another significant milestone in the execution of our strategy. I welcome the Caieiras employees to Ahlstrom-Munksjö.”Ahlstrom-Munksjö operates three plants near Sao Paolo, employing over 700 people with revenues of approximately of EUR 200 million following the acquisition.
*Assuming EUR/BRL exchange rate of 1 to 4.32
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Ahlstrom-Munksjö in brief
Ahlstrom-Munksjö is a global leader in fiber-based materials, supplying innovative and sustainable solutions to its customers. Our mission is to expand the role of fiber-based solutions for sustainable everyday life. Our offering include filter materials, release liners, food and beverage processing materials, decor papers, abrasive and tape backings, electrotechnical paper, glass fiber materials, medical fiber materials and solutions for diagnostics as well as a range of specialty papers for industrial and consumer end-uses. Our annual net sales are about EUR 3 billion and we employ some 8,000 people. The Ahlstrom-Munksjö share is listed on the Nasdaq Helsinki and Stockholm. Read more at www.ahlstrom-munksjo.com.