By P&PC Staff
By P&PC Staff
Mar. 1, 2018 – Sappi Ltd., a global producer of dissolving wood pulp, specialities and packaging papers, printing and writing papers and biomaterials, announced that all conditions precedent relating to the acquisition of the specialty paper business of Cham Paper Group Holding AG (CPG) have been fulfilled and closing has been completed.
The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland, as well as all brands and know-how.
According to Sappi, the main benefits of the acquisition include:
• Supporting Sappi’s diversification strategy and Vision2020 to grow in higher margin growth segments;
• Strengthening Sappi Europe’s specialities and packaging papers footprint and skills, adding 160,000 tonnes of speciality paper to its capacity;
• Increasing Sappi’s relevance in specialities and packaging papers, opening up new customers and markets to its existing products and generating economies of scale and synergies;
• Gaining greater share-of-wallet with valued brand owners and accelerating innovation and new product development;
• Improved near-term profitability and serve as platform for organic growth and further acquisitions. Will add €183 million of sales and approximately €20 million of EBITDA before taking into account synergies;
• Building on the investments currently underway to increase specialities and packaging papers capacity at the Somerset, Maastricht and Alfeld Mills; and
• Unlocking the growth potential of the CPG speciality paper business
“Our existing as well as new customers will benefit from a broader range of products coupled with our well-established excellent customer service. This transaction strengthens Sappi’s specialities and packaging papers business both in Europe and globally, improves our profitability and is another significant milestone towards realizing our Vision2020 goal,” said Steve Binnie, CEO of Sappi Limited.