Finnish paper and packaging firm Powerflute has agreed to acquire coreboard producer Corenso from Stora Enso for €81m.
An agreement to this effect was recently signed between Powerflute and Stora Enso. However, separation from Stora Enso and integration with Powerflute will be supported by transitional service agreements for all key services.
Stora Enso’s divestment forms part of its strategy to streamline the business and transform into a customer-focused renewable materials company in growth markets.
The acquisition, which is subject to Powerflute shareholder approval and other customary conditions, is expected to be completed in the fourth quarter.
Powerflute chairman Dermot Smurfit said: "The acquisition represents a significant development for both Powerflute and Corenso, and provides an excellent opportunity for Powerflute to deploy its considerable operational expertise and market knowledge to deliver value for shareholders.
"Corenso is one of the world’s leading producers of high-performance cores and core board, and we look forward to working with the management and employees of the business to enhance performance and to further expand its presence in both existing and new markets."
Stora Enso is expected to continue as the largest single customer of Corenso and has entered into a core supply agreement for an initial period of five years.
Headquartered in Finland, Corenso operates 12 cores plants across Europe, the US and China, and three coreboard mills in Finland, France and the US. It generated €97m in revenues, €8m in operating profit and €11m in EBITDA for the six months ending 30 June.