Munksjö intends to acquire the Decor, Abrasives, thin papers and fine arts businesses of ArjoWiggins including the mills in Arches, France and Dettingen, Germany. With the acquisition, Munksjö would form a world leading specialty paper company.
Munksjö would almost double the turnover for decor paper and add important growth potential for further expansion within new specialty paper segments such as abrasive papers, fine arts papers and thin papers primarily for pharmaceutical leaflets. Net sales for the combined group would amount to approximately 600 MEUR 2010 whereof decor sales more than 50 percent. The number of employees would be around 1,750.
“The acquisition is an important step in Munksjö’s growth strategy to become a major player in decor paper and to grow in profitable niche segments for industrial applications. Acquiring the competency within decor and the new segments will give access to new growth markets for further expansion. It’s a perfect match”, says Jan Åström, president and CEO of Munksjö. Munksjö has shown a steady growth since the second half of 2009 and the company is now one of the most profitable players within the specialty paper sector. After the acquisition, Munksjö will, offer and serve its global decor customers with a unique product offering, a full range of decor products. The product offering within abrasive papers show growth potential which fits perfectly with the specialty paper strategy of Munksjö.
The purchase price on a debt-free basis will be 95 MEUR. Total sales for the acquired businesses are approximately 220 MEUR. An information and consultation process has been launched with the relevant works councils. The acquisition requires approval from the European Commission. Going forward, Munksjö will continue working with improved efficiency and increased profitability. The new businesses will support this work with a stronger manufacturing network and intensified efforts within product development, sales and marketing.
“We create enhanced possibilities for future growth, profitability and cash-flow. This makes Munksjö well positioned for our planned IPO which most likely will take place
during 2011”, says Åström.