Two variants of the sleeves have been printed in 8-color UV flexo
Sappi has signed an agreement to acquire the specialty paper business of Cham Paper Group Holding AG (CPG) for 146.5 million CHF (approximately 149 million USD).
The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland, as well as all brands and know-how. The transaction is conditional on the approval from certain competition authorities and is expected to be completed during the first calendar quarter of 2018.
Sappi cites the main benefits of the acquisition as:
- Supports Sappi’s diversification strategy and Vision2020 to grow in higher margin growth segments;
- Strengthens Sappi Europe’s specialty and packaging papers footprint and skills, ans adds 160,000 tons of specialty paper to its capacity;
- Increases Sappi’s relevance in specialty papers, opening up new customers and markets to Sappi’s existing products and generating economies of scale and synergies;
- Gaining greater share-of-wallet with valued brand owners, while accelerating innovation and new product development;
- Providing improved near-term profitability and serving as a platform for organic growth and further acquisitions, and will add 183 million EUR (154 million USD) of sales and approximately 20 million EUR (16.9 million USD) of EBITDA before taking into account synergies;
- Builds on the investments currently underway to increase specialty paper capacity at its Somerset, Maastricht and Alfeld Mills; and
- Unlocks the growth potential of the CPG specialty paper business.
Steve Binnie, Sapp I CEO, said: ‘This acquisition further strengthens Sappi’s specialty paper business both in Europe and globally by combining Cham’s strong brands and assets with Sappi’s global reach. This transaction will increase profitability and unlock the significant growth and innovation potential inherent within the specialty paper market. I am very pleased that we have taken another signification step towards realizing our Vision2020 goal.’
Berry Wiersum, Sappi Europe CEO, added: ‘We are very excited about the possibilities this transaction opens up for Sappi as well as for Cham’s highly respected business. The products and brands which have been acquired are an excellent complement to our market offering, enabling us to offer our existing, as well as new customers in Europe, North America and globally, a broader range of products coupled with excellent customer service.’
The specialty paper business of CPG will continue to operate separately and independently from Sappi until clearances from the authorities are obtained.