Sappi Limited has recently concluded an agreement with AURELIUS Investment Lux One S.à.r.l. regarding the divesture of its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany and its Kirkniemi Mill in Finland.
Steve Binnie, CEO, Sappi Limited, commented, “We are happy to have reached agreement with AURELIUS to take ownership of the three mills. Although they no longer fit in Sappi’s portfolio, they are strong assets with good people. The decision to sell these mills follows a detailed and thorough strategic review by Sappi in line with our group Thrive25 strategic focus. This includes reducing exposure to the graphic paper segment while expanding Sappi’s presence in segments including packaging and speciality papers, pulp and biomaterials. Recent investments across our South African, American and European operating businesses demonstrate this priority.”
The enterprise value of the sale amounts to approximately €272m. The consideration consists of cash proceeds and retained receivables (€212m) as well as retained liabilities (€60m). The proceeds will be used to reduce debt further and continue to increase Sappi’s focus on the identified growth segments.
