Finnish pulp and paper manufacturer Stora Enso has agreed to divest its recycled fibre-based consumer board mill in Barcelona, Spain.
German private equity fund Quantum will purchase the mill for €10m.
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Subject to regulatory approvals, the divestment is expected to be completed in the fourth quarter of 2015.
Stora Enso consumer board division head Jari Latvanen said: "Stora Enso is focusing its consumer board offering on high-quality virgin-fibre products. The Barcelona mill is the only recycled-fibre based mill in our consumer board division.
"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. I believe that the mill can operate more efficiently under the new ownership."
The sale will reduce Stora Enso’s board production capacity by approximately 195,000t annually.
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By GlobalDataThis is expected to reduce Stora Enso’s annual sales by €117m. However, the deal will not have material impact on Stora Enso’s operational EBIT and cashflow going forward and will improve operational EBIT and EBITDA margins slightly.
Quantum focuses on corporate spin-offs that have turnover between €20m and €500m.
The company has completed similar transactions with global firms such as Bosch, BASF and Airbus Group. It has set up a €57m fund, under which five transactions were completed last year and two this year.
Image: The sale will reduce Stora Enso’s board production capacity by approximately 195,000t annually. Photo: courtesy of Sura Nualpradid via FreeDigitalPhotos.net.
