Stora Enso finalises divestment of its Kotka Mills to OpenGate Capital
STORA ENSO OYJ STOCK EXCHANGE RELEASE 1 July 2010 at 10.30 GMT
Stora Enso has finalised the divestment of its integrated mills at Kotka in Finland and its laminating paper operations in Malaysia to private equity firm OpenGate Capital as announced on 22 April 2010. The total consideration including earn-out is up to EUR 24 million. The divestment is part of the plan to focus Stora Enso's business portfolio announced on 19 August 2009. As part of the transaction, Stora Enso is divesting its laminating paper, special coated magazine paper and sawmill businesses at Kotka. The transaction also includes the fully-owned laminating paper subsidiary in Malaysia, and the business operations of the Tainionkoski paper machine 7, which remains in Stora Enso's ownership, but is 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 expected 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 reduces Stora Enso's annual production capacity by 180 000 tonnes of machine-finished coated paper (MFC), 200 000 tonnes of laminating paper, 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, are transferring to the service of the new owner. Stora Enso and OpenGate Capital made 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, Strategy and M&A, Packaging, tel. +358 2046 21486 Päivi Kauhanen, Director, Communications in Finland, tel. +358 50 598 9560 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