In line with its strategy to focus its consumer board offering on high quality virgin fibre products, Stora Enso has sold its Barcelona mill, which produces recycled fibre based consumer board, to private equity fund Quantum.
“The initial cash consideration for the divestment of the shares is approximately €10 million, subject to customary closing day adjustments,” Stora Enso said in a press release.
“The transaction has no material income statement impact and is expected to be completed in the fourth quarter of 2015, subject to regulatory approvals,” it added.
“Stora Enso is focusing its consumer board offering on high quality virgin-fibre products and the Barcelona mill is the only recycled-fibre based mill in our Consumer Board division,” Jari Latvanen, head of the division said.
“Despite positive results development in recent months, the Barcelona mill requires further development effort and investment if it is to remain on a profitable path,” he added.
Based on the annual figures for 2014, the divestment is expected to reduce Stora Enso's annual sales by €117 million and also reduce Stora Enso's annual board production capacity by around 195,000 tons.
“The transaction does not have material impact on Stora Enso's operational EBIT and cash flow going forward and it will improve operational EBIT and EBITDA margins slightly,” Stora Enso informed.
Quantum Capital Partners is a German private equity fund headquartered in Munich and focuses on corporate spin-offs and carve-outs in which the acquisition has a turnover between €20-500 million.
Quantum has completed a series of successful transactions with leading global corporations such as Bosch, BASF and Airbus Group.
Quantum's current portfolio consists of seven companies, with a combined turnover of some €350 million.
Quantum commands a newly established fund of more than €57 million and is an active investor in the industry, having completed five transactions in 2014 and two in 2015.
