International Paper to sell Kwidzyn Pulp and Paper Mill in Poland to Mayr-Melnhof for EUR 670 Million
The Kwidzyn mill employs approximately 2,300 people and has the annual capacity to produce 740,000 metric tons of folding boxboard, uncoated freesheet, specialty kraft papers, and market pulp on four machines. On December 3, 2020, International Paper announced its intention to spin off its Printing Papers business into a standalone, publicly-traded company in order to focus on its corrugated packaging and absorbent fibers businesses.
The sale of Kwidzyn provides an opportunity for International Paper to realize a premium value and significant incremental cash proceeds, but otherwise does not change its plans for the proposed spin-off. International Paper will engage in a consultation process with the appropriate employee representatives and expects the transaction to close in the third quarter of 2021, subject to customary closing conditions and regulatory approvals.
Mayr-Melnhof Group has agreed to acquire International Paper (Poland) Holding sp. z.o.o. for a debt and cash free amount of around EUR 670 million and additionally assuming ca. EUR 33 million of usufruct and operating lease liabilities according to IFRS treatment. The acquisition of Kwidzyn forms part of MM’s strategy to grow in high quality virgin fiber based cartonboard with innovative, sustainable and cost effective FBB grades.
At its integrated pulp and paper site in Poland, Kwidzyn operates a pulp mill with an annual capacity of around 400,000 t and four integrated cartonboard / paper machines: The flagship is a FBB board machine with 260,000 t annual capacity. In addition, Kwidzyn has recently entered the MF kraft paper segment through the conversion of one of its paper machines to serve the growing demand for flexible fiber-based packaging products. Production of this machine is increasing up to an annual capacity of 75,000 t. Finally, Kwidzyn operates two of the most attractive copy paper machines (UWF) in Europe with an annual total capacity of 410,000 t.
