Stora Enso finalises acquisition of Schneidersöhne Group
STORA ENSO OYJ Stock Exchange Release 31 August 2005 at 17.00
Stora Enso finalises acquisition of Schneidersöhne Group
Stora Enso has finalised its previously announced acquisition of
100% of the shares in the German paper merchant Schneidersöhne
Group. The all-cash acquisition was completed following approval
by regulatory and competition authorities. The acquisition price
on a debt- free basis was EUR 450 million. The synergies will be
achieved by optimising the value chain from producer to end-user
and efficiently co-ordinating operations within Stora Ensos
merchant business, Papyrus.
The strategic aims of the acquisition are to bring Stora Enso
closer to the customer and end-user in the value chain and to
improve the profitability of Stora Ensos merchant business.
Schneidersöhne will become part of Papyrus. Through Papyrus
Stora Enso will gain full management control of the company and
it will be fully consolidated from July 2005 onwards.
The acquisition of Schneidersöhne will have the following
financial effects on Stora Enso: earnings per share (EPS) and
cash earnings per share (CEPS), including full synergies of
approximately EUR 15 million from 2008 onwards, will be enhanced
by EUR 0.02 and EUR 0.05 respectively. Stora Ensos interest-
bearing debt will increase by EUR 450 million, and its
debt/equity ratio will increase by 0.06.
Close co-operation with expanding Papyrus will give us an even
better understanding of the requirements of printers and office
paper users so we can develop our products and services
accordingly. We will move closer to the customer. We will gain
synergies through more efficient co-operation between Stora
Ensos paper and board divisions and Papyrus, says Pekka
Laaksonen, Senior Executive Vice President, Stora Enso Fine
Paper.
Papyruss strategy is to take the lead in developing the
European merchant business. As a result of the Schneidersöhne
acquisition, we now have a strong market position, being the
second-largest in Europe, with good geographical coverage. We
will further improve our service by adding attractive products,
widening our distribution network and expanding our
comprehensive e-business solutions to more customers. We will
simply help our customers to become more successful, says Mats
Nordlander, President of Papyrus.
Schneidersöhne is by sales volume the second-largest paper
merchant in Germany and the fifth-largest in Europe. It has
operations in 11 countries, the biggest markets being Germany
and Switzerland. It has 38 branch offices, including 20 in
Germany. Schneidersöhne has 2 100 employees and had net sales of
EUR 1 130 million in 2004.
JP Capital International acted as the financial advisor for the
transaction.
www.papyrus.com
www.storaenso.com
For further information, please contact:
Pekka Laaksonen, Senior Executive Vice President, Stora Enso
Fine Paper, tel. +358 2046 21218
Esko Mäkeläinen, CFO, tel. +44 20 7016 3115
Mats Nordlander, President of Papyrus, tel. +46 703 370 890
Kari Vainio, Executive Vice President, Corporate Communications,
tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel.
+44 20 7016 3146
Papyrus is a wholly-owned paper merchanting subsidiary of Stora Enso
with net sales of EUR 640 million in 2004. Papyrus holds a leading
position in the Nordic countries and a strong market position in
Western Europe. It supplies 710 000 tonnes of paper annually. Papyrus
currently has a presence in 13 European countries.
Previous press releases concerning Stora Ensos Schneidersöhne
acquisition available at www.storaenso.com/press
- 25 April 2005: Stora Enso to acquire Schneidersöhne Group
STORA ENSO OYJ
p.p. Jukka Marttila Veli-Matti Tahvanainen