Billerud Finland has secured approval from requisite regulatory authorities for the previously announced acquisition of UPM's packaging paper operations in the Finnish towns of Pietarsaari and Tervasaari for SEK1.2bn (€130m).
As part of the transaction, Billerud will take over one paper machine at Pietarsaari and one at Tervasaari. The machines produce packaging paper used in areas such as food, retail, construction and other industries and have a production capacity of about 300,000t.
Billerud president and CEO Per Lindberg said the acquisition strengthens the company's offering in packaging paper and provides with a platform for the further development of packaging solutions.
"Also, the acquisition sharply reduces our pulp exposure as we will purchase an annual pulp volume corresponding to around 85% of Billerud's present pulp sales volume. We also reduce our currency exposure," Lindberg added.
Billerud, a wholly-owned subsidiary of Swedish kraft and sack paper maker Billerud reported sales of around €220m in 2011 and its manufactured products include various packaging papers. The company hopes to close the transaction during the second quarter of 2012.
