JOHANNESBURG, Feb. 28, 2018 /PRNewswire/ -- Sappi Limited, a leading global producer of dissolving wood pulp, specialities and packaging papers, printing and writing papers and biomaterials, today announced that all conditions precedent relating to the acquisition of the speciality 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.
The main benefits of the acquisition include:
- Supports Sappi's diversification strategy and 2020vision to grow in higher margin growth segments
- Strengthens Sappi Europe's specialities and packaging papers footprint and skills; adds 160,000 tons of speciality paper to our capacity
- Increases Sappi's relevance in specialities and packaging 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
- 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
- Builds on the investments currently underway to increase specialities and packaging papers capacity at our Somerset, Maastricht and Alfeld Mills
- Unlocks the growth potential of the CPG speciality paper business
Commenting on the transaction Steve Binnie, Chief Executive Officer of Sappi Limited, said:
"I am very pleased that we have been able to finalise this acquisition so quickly. We are now able to move with speed to combine Cham's strong brands, employees and assets with Sappi's global presence. 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."
Further information can be found at www.sappi.com
About Sappi Limited
A global leader in dissolving wood pulp and paper-based solutions, Sappi Limited (listed and in the Top 40 on the JSE - SAP), is headquartered in Johannesburg, South Africa; has over 12,000 employees; manufacturing facilities on three continents, in seven countries (eight operations in Europe, three operations in America and five operations in South Africa) and customers in over 150 countries worldwide.
Sappi works closely with customers to provide relevant and sustainable dissolving wood pulp, paper (speciality, packaging and printing and writing), paper pulp, and biomaterial products and related services and innovations. Our market-leading range of paper products includes: flexible packaging, label, release liner, containerboard and fluting, coated fine papers, casting release papers and in our Southern African region newsprint, uncoated and business papers. These products serve the fashion, FMCG and industrial sectors. Our dissolving wood pulp products are used worldwide by converters to produce viscose fibre, pharmaceutical products as well as a wide range of household and consumer products.
We continue to grow into a profitable and cash-generative diversified business with an exciting future in woodfibre, a renewable resource.
About Cham Paper Group Holding AG (CPG): CPGN (SWX) The Cham Paper Group Holding AG is a leading manufacturer of coated speciality papers. The company was founded in 1657. Following the divestment of the paper business, the company will focus on its real estate business and will operate under the name «Cham Group».
Carmignano Mill (Carmignano di Brenta, Padua, Italy): This is a non-integrated paper mill with two paper machines. The plant can produce 100,000 tons of paper and employs 223 people. Paper grades include C1S FlexPack, C1S Label Papers, Wet Glue and Self-Adhesive applications, base paper for metallisation.
Condino Mill (Borgo Chiese, Trento, Italy): This is a non-integrated paper mill, with one paper machine. The mill employs 127 employees and can produce 60,000 tons of paper per year. Paper grades include glassine (silicone base paper) and super calendared, uncoated flexible packaging papers.
Digital Imaging Business (Cham, Canton Zug, Switzerland): A finishing plant is located in Cham Switzerland, in a 4000sqm industrial warehouse where the base paper from Condino or Carmignano mills are converted to produce 12,000 tons of digital imaging paper. The business employs 35 people.
SOURCE Sappi Limited