October 24, 2018 By P&PC Staff
October 24, 2018 – Ahlstrom-Munksjö has completed the acquisition of MD Papéis’ Caieiras specialty paper mill in Brazil for about EUR 98 million.
The Caieiras mill 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.
Ahlstrom-Munksjö says the Caieiras product offering is a good match for the company, with 80 per cent of sales being in line with its 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 manufacturer of tape materials, serving both local and global customers. In addition, the company says production and delivery capabilities as well as competitiveness are improved by combining Caieiras with the Ahlstrom-Munksjö’s existing operation in nearby Jacarei.
“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 fibre-based solutions market that offers growth,” says Daniele Borlatto, EVP of industrial solutions business area. “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.”
Ahlstrom-Munksjö operates three plants near Sao Paolo, employing over 700 people with revenues of approximately of EUR 200 million following the acquisition.
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