Munksjö intends to acquire ArjoWiggins’ abrasive and decor paper businesses
15 December 2010
With the aim of becoming one of the world’s leading specialty businesses, Munksjö has announced that it will buy ArjoWiggins’ abrasive and decor paper businesses.The purchase price on a debt free basis will be 95m euroand will relate to the Decor, Abrasives, thin papers and fine arts businesses of ArjoWiggins including the mills in Arches (France) and Dettingen (Germany).
Once the acquisition is completed, Munksjö will become a world leading specialty paper company. It would mean doubling 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 m euro in 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. The product offering within abrasive papers show growth potential which fits perfectly with the specialty paper strategy of Munksjö.
Total sales for the acquired businesses are approximately 220 m euro. The acquisition requires approval from the European Commission. After completion, 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 Jan Åström, President and CEO Munksjö AB.
Munksjö is an international specialty paper company producing a focused range of high-value-added paper to a selection of industrial sectors. Munksjö has world leading market positions in specialty paper areas such as: upgrading of laminate surfaces for flooring, furniture and interior design, electrotechnical paper for insulation in high-voltage cables and interleaving to the steel industry. Production facilities are located in Germany, Spain, Norway, China and Sweden. Munksjö has customer service centres, sales offices and agents with global reach. Estimated sales for 2010 are 390 m euro and the number of employees will be approximately 1,050.