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.
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.
This 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.