Sappi Confirms Montigny Investments Purchase of Usutu Business
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Sappi, Johannesburg, South Africa, has completed the sale of its Usutu Forest Products Co. to local Swaziland business Montigny Investments Ltd. The company had announced at the beginning of this month that it intended to dispose of Usutu Forest Products to Montigny Investments, and this week confirmed that all conditions precedent to the successful conclusion of the transaction were met as of July 15.
The purchase consideration to be paid by Montigny to Sappi of ZAR (South African Rand) 1 billion (about $93.8 million), will be used for general corporate purposes and will reduce Sappi's net debt.
Usutu Forest Products Co. owns and operates softwood plantations and a pulp mill. The company was formerly known as Usutu Pulp Co. and changed its name to Usutu Forest Products Co. Ltd in March 2011. The company was founded in 1961 and is based in Manzini, Swaziland.
Commenting on the sale, Sappi CEO Steve Binnie said that "we are extremely happy to have been able to sell our Usutu business to Montigny. The transaction reflects the change in Sappi's strategic focus towards high growth segments such as specialized cellulose and packaging. The proceeds of the sale will contribute to paying down debt."
Sappi Ltd. is a global pulp and paper company with more than 13,500 employees, and manufacturing operations on three continents in seven countries and customers in 100-plus countries around the world.
