Cham Paper Group Selling Italian Paper Mills to Delfort Group
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The Cham Paper Group, Switzerland, will sell its Italian paper mills in Carmignano and Condino to Delfort Group, Traun, Austria, and exit base paper production. Delfort Group produces and distributes specialty papers and has some 1,750 employees at five mills in Austria, Hungary, the Czech Republic, and Finland. Closing of the transaction is expected to occur in the fourth quarter of this year.
The transaction value (enterprise value) amounts to approximately EUR 86 million and includes financial liabilities of about EUR 45 million, which are to be taken over by the acquirer. The net purchase price will be paid in cash. As agreed by both parties, further details of the share purchase agreement will not be disclosed.
During the past few months, the board of directors of the Cham Paper Group has been evaluating strategic options which, after the comprehensive restructuring of the past 18 months, bring back sustainable growth to the specialty paper business. Integration of the two complementary Italian mills into the Delfort Group was found to be a promising option, the company said.
The Cham Paper Group activities in Switzerland are not affected by divestment of the Italian mills. Starting this year, industrial activities of the Group in Switzerland have been focused on the finishing (coating technology) of external base paper as well as development, commercial launch, and distribution of high-grade product groups and services. Also, the Group is planning to transform its 'Papieri' site in Cham into a new residential and working area.
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