Ahlstrom-Munksjö to acquire the Caieiras specialty paper mill in Brazil
Ahlstrom-Munksjö has entered into an agreement to acquire MD Papéis’ Caieiras specialty paper mill in Brazil of the Formitex Group, an industrial conglomerate active in the paper, chemicals and panel board industries.
The annual net sales of the business to be acquired are approximately EUR 80 million and comparable EBITDA approximately EUR 13 million in 2017. The debt free purchase price is approximately EUR 100 million.
The Caieiras product offering is an excellent match for Ahlstrom-Munksjö with 80% of sales being in line with Ahlstrom-Munksjö’s current product and solution portfolio. The acquisition significantly strengthens Ahlstrom-Munksjö’s offering and production platform in the region, and provides attractive growth opportunities, synergies and further production optimization opportunities for the longer term.
The Caieiras mill is located in the vicinity of Ahlstrom-Munksjö’s existing production plants in Jacarei, part of the Industrial Solutions business area, and in Louveira, part of the Filtration and Performance business area. The mill gives access to local production of decor paper, thus strengthening Ahlstrom-Munksjö’s service offering and partnership with existing customers, which so far has relied on imports.
Ahlstrom-Munksjö becomes a global leading producer in decor paper, and the mill is a competitive platform for further growth in South America. Ahlstrom-Munksjö is already a global leading supplier in tape, serving both local and global customers, and this position is further strengthened through the transaction. And in addition by combining the businesses of Caieiras and Jacarei Ahlstrom-Munksjö improves production and delivery capability as well as competitiveness.
Ahlstrom-Munksjö’s presence in Brazil grows further through the acquisition, operating three plants, all near Sao Paolo, and employing over 700 persons and revenues of approximately of EUR 200 million.
“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. We have plentiful of opportunities to grow in our existing business segments, proceed with new product development and consider growth in adjacent segments”, says Hans Sohlström, President and CEO of Ahlstrom-Munksjö Oyj.
“Further expanding our platform in Brazil will allow us to serve our specialty paper customers with an even stronger offering and efficiency”, says Daniele Borlatto, EVP of Industrial Solutions Business Area. “This acquisition strengthens our position as a global leader in Decor papers” says Tomas Wulkan, EVP of the Decor Business Area.
“Formitex Group regards the divestment from the specialty paper business as an opportunity for the group to consolidate its strategic interest in strengthening its chemicals core businesses. Ahlstrom-Munksjö is a great fit as a new parent to the Caieiras Mill, a strategic owner that can expand the mill’s technology base – further accelerating its growth potential and strengthening sales internationally”, Formitex says in a statement.