Ahlstrom-Munksjö to acquire paper mill in Brazil
Finnish company Ahlstrom-Munksjö has agreed to acquire MD Papéis’ Caieiras speciality paper mill in Brazil from Formitex Group.
Annual net sales of the mill to be acquired are approximately 80 million euros and the debt-free purchase price approximately 100 million euros. Financing for the acquisition has been agreed with Banco Citibank.
The Caieiras mill is located close to Ahlstrom-Munksjö’s existing production plants in Brazil, near Sao Paolo. It will significantly strengthen Ahlstrom-Munksjö’s product offering, as it gives the Finnish company access to local production of decor paper, while further strengthening its position as a global leading supplier in tape.
“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 fibre-based solutions market that offers growth,” says Hans Sohlström, president and CEO of Ahlstrom-Munksjö.
The transaction is expected to be completed in the third quarter of 2018 and is subject to customary completion terms, including clearance from the relevant competition authorities.