Stora Enso, Finland, will divest its Uetersen specialty and coated fine paper mill in Germany to a company mainly owned by the private equity fund Perusa Partners Fund 2. The cash consideration for the divestment of the shares is approximately EUR 7 million, subject to customary closing day adjustments. The loss on disposal amounts to approximately EUR 30 million and will be recorded as a non-recurring item in Stora Enso’s fourth quarter 2014 results. 

 

The transaction is in line with Stora Enso’s strategic transformation to a customer focused renewable materials company. Expected to be completed in the first quarter of 2015, the transaction will enhance Stora Enso’s operational EBIT and cash flow from the second quarter of 2015. Based on 2013 annual figures, the divestment is expected to reduce Stora Enso’s annual sales by EUR 155 million. It will also reduce the company’s annual paper production capacity by about 240,000 metric tons. Uetersen Mill employs approximately 400 people.

 

Stora Enso will continue to produce specialty papers at Imatra Mill and coated fine paper at Oulu Mill in Finland.

 

Stora Enso’s previous attempt to divest the mill to Brigl & Bergmeister, an Austrian specialty paper producer, was unsuccessful due to the German Federal Cartel Office’s (FCO) indicated intentions to prohibit the proposed transaction.