Stora Enso has signed an agreement to divest its Barcelona mill, which produces recycled-fibre based consumer board, to the private equity fund Quantum. The transaction is in line with Stora Enso's strategy to focus its consumer board offering on high quality virgin-fibre products.
The initial cash consideration for the divestment of the shares is approximately EUR 10 million, subject to customary closing day adjustments. The transaction has no material income statement impact and is expected to be completed in the fourth quarter of 2015, subject to regulatory approvals.
"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," says Jari Latvanen, Head of Consumer Board division.
Based on the annual figures for 2014, the divestment is expected to reduce Stora Enso's annual sales by EUR 117 million and simultaneously decrease Stora Enso's annual board production capacity by approximately 195 000 tonnes. The transaction does not have material impact on Stora Enso's operational EBIT and cash flow going forward and it will improve operational EBIT and EBITDA margins slightly. The Barcelona mill employs approximately 220 people.
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