Holmen acquisition in Spain - buys Papelera Peninsular

Holmen acquisition in Spain Buys Papelera Peninsular In furtherance of the Holmen Group's strategic policy of growth and development in newsprint and magazine paper, Holmen has reached an agreement in principle to acquire Papelera Peninsular S.A. from Spanish company Unipapel. The price corresponds to some MSEK 2,000 on a debt-free basis. The acquisition requires the consent of relevant competition authorities. Holmen's President and CEO, Per Ericson, comments: "With the object of more effectively meeting the needs of the key customers, the Holmen Group shall grow not only organically but also via acquisition. This acquisition will enable us to consolidate our position as a leading supplier to European newspaper publishers. Holmen already has a strong position in this field and the position of its standard newsprint and higher added value specialty products can now be further strengthened. Papelera Peninsular (PP) is located in a newly established industrial district south of Madrid and comprises a newsprint mill that was commissioned in the middle of 1998 and two associate companies for collecting waste paper. Production is based solely on recycled paper, which is collected mainly in Spain but also in Portugal. The unit employs some 250 people. During its first year of operation 1999, PP's total turnover corresponded to some MSEK 700. The mill and the new paper machine whose output is being successively raised, will have an annual capacity of some 200,000 tonnes after running in. In organisational terms, PP will become a production unit within the Holmen Paper business area. Holmen Paper's President Göran Lundin, explains: "In common with the rest of Western Europe, the publishing industry in the Spanish and Portuguese markets is going through a process of growing concentration. This tendency, involving the sale of larger volumes to each customer, is expected to continue, and together with PP, Holmen Paper will become a powerful supplier with Spain and Portugal as a second domestic market. "There is a considerable need to import wood-containing printing paper, as the degree of self-sufficiency is only around 30 per cent in these countries. Consumption nearly doubled during the 1990s, and is currently running at more than 1,300,000 tonnes per year. In view of the strong economic development expected in these two countries, with their 50 million inhabitants, the prospects for further growth in consumption are bright," concludes Göran Lundin. Holmen Paper is a business area in the Holmen Group. With an annual capacity of some 1,700,000 tonnes after the acquisition of PP, Holmen Paper will be Western Europe's sixth largest producer of wood-containing printing paper. Its product range includes newsprint, improved newsprint, telephone directory paper, coloured newsprint, SC paper and coated printing paper. Net turnover after the acquisition will amount to more than MSEK 8,000 per year, and the business area will have 2,600 employees. Unipapel is listed on the Madrid stock exchange and is Spain's largest paper converter. For further information, please contact: Holmen's President and CEO, Per Ericson, telephone +34 917016767 (room 319), mobile 070 - 322 94 55 Holmen Paper's President, Göran Lundin, mobile +46 70 592 98 47 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/04/06/20000406BIT00180/bit0001.doc http://www.bit.se/bitonline/2000/04/06/20000406BIT00180/bit0002.pdf