Finland-based paper and packaging company Powerflute has acquired core and coreboard manufacturer Corenso for €102.3m.
Powerflute had previously announced that it would invest around €81m in the acquisition. However, the company later said in a statement that after taking into account the preliminary valuation attributed to minorities of €8.1m and the initial estimate of net cash acquired and adjustments required to net working capital of €20.4m, Corenso was valued at €102.3m.
The acquisition of the Stora Enso-owned company would also include Wisconsin Rapids-based Corenso North America. Corenso currently employs about 920 people across 10 countries.
The Wisconsin Rapids Tribune quoted president of Corenso's Wisconsin Rapids-based operation Tom Janke as saying that the acquisition won't affect the employment numbers.
It had been previously reported by the Daily Tribune Media that Stora Enso had reached a conditional agreement in late September to divest the Corenso business to Powerflute.
Corenso was fully owned by Stora Enso which is a known paper and board manufacturer. Its cores and coreboards are manufactured from recycled paper and are used in the paper, packaging, textiles, steel, aluminium and other industries.
The company's annual production capacity of coreboard is 290,000 tonnes and production of cores, tubes and edge protectors amounts to 265,000 tonnes.
Speaking about the acquisition, Powerflute chairman Dermot Smurfit said: "We are delighted to complete the acquisition of Corenso and look forward to working closely with the management, customers and suppliers to further strengthen its position as a leading international supplier of high performance cores and coreboard.
"The acquisition of Corenso is a major step for Powerflute and is consistent with our strategy of pursuing opportunities for growth and development in attractive, specialty paper and packaging markets. Following completion of the integration of Corenso, Powerflute will be a significantly larger group which we believe will provide us with a strong foundation from which to pursue further acquisition opportunities in due course."
Image: Corenso manufactures core and coreboard. Photo: courtesy of SOMMAI/freedigitalphotos.net.
