Ahlstrom divests its label and processing business
Ahlstrom (headquartered in SF, high performance materials, 5200 employees in 28 countries and on six continents) has announced on August 28, 2012 to divest its label and processing business and combine it with Munksjö Group to create a world leader in specialty papers. Ahlstrom will keep a minority stake in the to be formed new company of around 15 %
Ahlstrom Corporation signed an agreement with EQT, the principal owner of Munksjö AB to combine its Label and Processing business with Munksjö AB to form a global leader in specialty papers through two partial demergers, one consisting of the Label and Processing operation in Europe (LP Europe) and one in Brazil (Coated Specialties). There will be formed a new company by the name Munksjö Corporation to reunite the discharged LP business of Ahlstrom and Munksjö AB. Before the shares of the new company will be listed on NSDAQ OMX Helsinki, shares in the value of around EUR 100 million will be offered to institutional investors and in a second phase the Brazilian business will be separated though another partial demerger into Munksjö Corp. The Ahlstrom shareholders will have a stake in the new company of around 33 % and Munksjö AB shareholders around 39 % and the remaining shares will be owned by new shareholders, including Ahlstrom Corporation, Varma and Ilmarinen. The second phase is expected to be completed by the end of the second quarter of 2013 whereas phase one should be completed in the first quarter of 2013. With this transaction Ahlstrom is to focus exclusively on its value-added business areas, namely Building and Energy, Filtration and Food as well as Medical and the LP business will be further develop together with the new Munksjö (a combined turnover would have reached EUR 1.3 billion in 2011 with 3300 employees and 16 production sites, including 14 in Europe, one in brazil and one in China. The R&D will be located in France) and this company will reach annual synergies of about EUR 25 -30 million when fully implemented.
After the completion of the transaction, Ahlstrom’s shareholders will own shares in two focused listed companies which is expected to increase share value over time.