Sappi Limited announced that it has signed an agreement to acquire the speciality paper business of Cham Paper Group Holding AG (CPG).
The transaction includes the acquisition of the CPG Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland as well as all brands and know-how. It will be funded through internal cash resources. The transaction is conditional on the approval from certain competition authorities. The acquisition is expected to be completed during the first calendar quarter of 2018.
The main benefits of the acquisition include:
- Supporting Sappi’s diversification strategy and 2020 vision to grow in higher margin growth segments.
- Strengthening Sappi Europe’s speciality and packaging papers' footprint and skills; adding 160,000 tons of speciality paper to its capacity.
- Increasing Sappi’s relevance in speciality papers, opening up new customers and markets to Sappi’s existing products and generating economies of scale and synergies.
- Gaining greater share-of-wallet with valued brand owners; accelerating innovation and new product development.
- Improving near-term profitability and serve as a platform for organic growth and further acquisitions.
- Building on the investments currently underway to increase speciality paper capacity at the Somerset, Maastricht and Alfeld Mills.
- Unlocking the growth potential of the CPG speciality paper business.
Commenting on the transaction, Steve Binnie, chief executive officer of Sappi Limited said, ‘This acquisition further strengthens Sappi’s speciality paper business both in Europe and globally by combining Cham’s strong brands and assets with Sappi’s global reach. This transaction will increase profitability and unlock the significant growth and innovation potential inherent within the speciality paper market.'
Berry Wiersum, CEO Sappi Europe stated, ‘We are very excited about the possibilities this transaction opens up for Sappi as well as for Cham’s highly respected business. The products and brands which have been acquired are an excellent complement to our market offering, enabling us to offer our existing, as well as new customers in Europe, North America and globally, a broader range of products coupled with excellent customer service.’
The speciality paper business of CPG will continue to operate separately and independently from Sappi until clearances from the authorities are obtained.