Ahlstrom sold its wipes business, the Home and Personal business area, to Suominen in 2011, but the transfer of the Paulínia plant in Brazil was prolonged due to delays in certain required official permissions and subsequent renegotiations between Suominen and Ahlstrom. The enterprise value of the transaction is agreed at EUR 17.5 million. Suominen will finance the acquisition through a convertible hybrid bond issue with a nominal value of EUR 17.5 million.
Ahlstrom's Home and Personal business area, excluding the Brazilian part of the operation, was transferred to Suominen on Oct. 31, 2011. The plant sold this past week is located in Paulínia, Brazil, approximately 120 km northwest of São Paulo. The plant was built in 2008 and employs approximately 40 people. All employees will be transferred to Suominen at the closing of the transaction, which is expected to take place in February.
"We are very pleased that the transfer of Ahlstrom Paulínia and consequently the divestment of our wipes business to Suominen will now be completed. In accordance with our new strategy, Ahlstrom focuses on high performance fiber-based products that aim for a clean and healthy environment," said Jan Lång, president and CEO, Ahlstrom.
The transaction requires that the extraordinary shareholders' meeting of Suominen will authorize its board to issue a convertible hybrid bond. Ahlstrom will sell Ahlstrom Paulínia to Suominen in exchange for cash, and has agreed to underwrite any convertible hybrid capital notes not sold to the market at nominal value
Ahlström Capital Group has committed to purchase any notes received by Ahlstrom, at the same nominal value, any time as requested by Ahlstrom within 9.5 months of the closing of the Ahlstrom Paulínia transaction. As compensation, Ahlstrom will grant Ahlström Capital an option to acquire Ahlstrom's current 26.9% shareholding in Suominen at a price of EUR 0.50 per share within 10 months of the closing of the transaction. Ahlstrom will, however, retain the right to sell all or part of its shares in Suominen to other parties until Ahlström Capital exercises the option.
"We are pleased to participate in the completion of the Paulínia factory transaction. We consider it as an interesting opportunity that through commitments made now in the financing arrangement, Ahlström Capital has the possibility to become one of the major shareholders of Suominen," says Panu Routila, president and CEO of Ahlström Capital.
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