Stora Enso, Helsinki, Finland, announced earlier this week that it has signed an agreement to divest its Barcelona mill, which produces recycled-fiber based consumer board, to the private equity fund Quantum. The transaction is in line with Stora Enso’s strategy to focus its consumer board offering on high quality virgin-fiber products.

The initial cash consideration for the divestment of the shares is approximately EUR 10 million, subject to customary closing day adjustments. The transaction has no material income statement impact and is expected to be completed in the fourth quarter of 2015, subject to regulatory approvals.

"Stora Enso is focusing its consumer board offering on high quality virgin-fiber products. The Barcelona mill is the only recycled-fiber based mill in our Consumer Board division. Despite positive results development in recent months, the Barcelona mill requires further development effort and investment if it is to remain on a profitable path. I believe that the mill can operate more efficiently under the new ownership," said Jari Latvanen, head of the consumer board division.

Based on the annual figures for 2014, the divestment is expected to reduce Stora Enso’s annual sales by EUR 117 million and simultaneously decrease Stora Enso’s annual board production capacity by 195,000 metric tons. The transaction does not have material impact on Stora Enso’s operational EBIT and cash flow going forward and it will improve operational EBIT and EBITDA margins slightly. The Barcelona mill employs approximately 220 people.

Quantum Capital Partners is a German Private Equity fund headquartered in Munich. Quantum focuses on corporate spin-offs and carve-outs in which the acquisition target has a turnover between EUR 20 and 500 million and can benefit from Quantum’s operational experience. Quantum has completed a series of successful transactions with leading global corporations such as BOSCH, BASF, and AIRBUS Group. Quantum’s current portfolio consists of seven companies, with a combined turnover of some EUR 350 million. Quantum commands a newly established fund of more than EUR 57 million and is an active investor in the industry, having completed five transactions in 2014 and two in 2015. 

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 billion.