Arjowiggins sale terminated
Sequana's sale of Arjowiggins’ Graphic and Creative Papers businesses has been canned after the buyer got cold feet as a result of deteriorating market conditions.
Sequana announced the termination of the planned sale of its subsidiary, Arjowiggins’ Graphic and Creative Papers businesses, to Fineska BV.
In July of 2018, Sequana announced the proposal to sell its Arjowiggins’ Graphic and Creative Papers businesses to Fineska for EUR 125 million. The businesses reported sales of EUR 528 million in 2017, or 19% of Sequana Group’s consolidated sales, of which 61% comprised recycled graphic and specialty (i.e., laminated and transfer) papers and 39% premium fine papers and specialty papers (i.e., bookbinding and tracing paper).
Arjowiggins’ Graphic and Creative Papers businesses operates a total of eight mills located in France, the UK, Spain and China and employ over 2,000 people. Sequana had hoped to complete the deal by the end of October 2018.
In a press release, Sequana said, “The negotiations initiated in July 2018 with Fineska BV (the Andlinger & Company group) for the sale of Arjowiggins’ Graphic and Creative Papers businesses continued in an extremely deteriorated market conditions context, notably hit by significant and successive price increases in pulp, and to a lesser extent in energy. In this context and considering the lack of visibility for FY 2019, Fineska BV has stopped the sale process. Because of this decision, Sequana is reviewing the different strategic options to be implemented.”
