Stora Enso divests its Kotka Mills to OpenGate Capital
STORA ENSO OYJ STOCK EXCHANGE RELEASE 22 April 2010 at 05.58 GMT
Stora Enso has signed an agreement to sell its integrated mills at Kotka in
Finland and its laminating paper operations in Malaysia to private equity firm
OpenGate Capital to focus Stora Enso's business portfolio as announced on 19
August 2009. The total consideration including earn-out is up to EUR 24 million.
Stora Enso has recorded a write down of EUR 23 million relating to working
capital and fixed assets as non-recurring items in its first quarter 2010
results. The divestment is expected to be finalised during the second quarter of
2010.
As part of the transaction, Stora Enso will divest its laminating paper, special
coated magazine paper and sawmill businesses at Kotka, also including the
fully-owned laminating paper subsidiary in Malaysia, and the business operations
of the Tainionkoski paper machine 7, which will remain in Stora Enso's
ownership, but will be leased to the new owner. The Kotka mill site and its
buildings are included in the divestment.
Based on 2009 annual figures, the divestment is estimated to reduce Stora Enso's
annual sales by EUR 203 million, improve its annual operating profit by EUR 11
million and reduce its working capital by EUR 24 million. This operating profit
improvement of EUR 11 million is included in the estimate of EUR 140 million to
EUR 160 million profit improvement arising from the proposed closures,
divestments and product swaps announced on 19 August 2009.
The divestment will reduce Stora Enso's annual production capacity by 180 000
tonnes of machine-finished coated paper (MFC), 200 000 tonnes of laminating
paper and 40 000 tonnes of Imprex products and 230 000 m3 of sawnwood. The 570
employees affected, including 480 working at Kotka, 50 at Tainionkoski and 40 in
Malaysia, will transfer to the service of the new owner. Stora Enso and OpenGate
Capital will make an agreement about wood supply as part of the divestment.
About OpenGate Capital
OpenGate Capital is an opportunistic private equity firm that acquires
controlling interests in businesses with solid fundamentals that exhibit
opportunities for operational improvements and growth. Established in 2005,
OpenGate Capital has a global footprint with headquarters in Los Angeles,
California and a principal office in Paris, France. OpenGate is served by a
seasoned team of M&A and operating professionals that bring the skills needed to
acquire, operate and build successful companies. The partners of OpenGate have
executed more than 100 transactions worldwide ranging from corporate
divestitures, turnaround acquisitions, industry consolidations and other special
situations investments across a wide array of industries and geographic markets.
For further information, please contact:
Markus Rauramo, CFO, tel. +358 2046 21121
Veli-Jussi Potka, EVP, Packaging, tel. +358 2046 21486
Päivi Kauhanen, Director, Communications in Finland, tel. +358 2046 21380
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
www.storaenso.com
www.storaenso.com/investors
Stora Enso is a global paper, packaging and wood products company producing
newsprint and book paper, magazine paper, fine paper, consumer board, industrial
packaging and wood products. The Group is the world leader in forest industry
sustainability. We offer our customers solutions based on renewable raw
materials. Our products provide a climate-friendly alternative to many
non-renewable materials, and have a smaller carbon footprint. Stora Enso is
listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso
employs some 27 000 people worldwide, and our sales in 2009 amounted to EUR 8.9
billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and
Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ
Jari Suvanto Ulla Paajanen-Sainio
