Sappi Ltd., Johannesburg, South Africa, a global producer of dissolving wood pulp, specialties and packaging papers, printing and writing papers, and biomaterials, this week announced that all conditions precedent relating to the acquisition of the specialty paper business of Cham Paper Group Holding AG (CPG), Cham’ Switzerland (photo), have been fulfilled and closing has been completed.

The transaction includes the acquisition of CPG's Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland, as well as all brands and know-how.  

The main benefits of the acquisition include:

• Supports Sappi's diversification strategy and 2020vision to grow in higher margin growth  segments 
• Strengthens Sappi Europe's specialties and packaging papers footprint and skills; adds 160,000 metric tpy of specialty paper to company’s capacity 
• Increases Sappi's relevance in specialties and packaging papers, opening up new customers and markets to Sappi's existing products and generating economies of scale and synergies 
• Gaining greater share-of-wallet with valued brand owners; accelerating innovation and new product development 
• Improved near-term profitability and serve as platform for organic growth and further acquisitions. Will add EUR 183 million of sales and approximately EUR 20 million of EBITDA before taking into account synergies 
• Builds on the investments currently underway to increase specialties and packaging papers capacity at Sappi’s Somerset, Maastricht, and Alfeld Mills 
• Unlocks the growth potential of the CPG specialty paper business.

Commenting on the transaction, Steve Binnie, CEO of Sappi Limited, said that "I am very pleased that we have been able to finalize this acquisition so quickly. We are now able to move with speed to combine Cham's strong brands, employees, and assets with Sappi's global presence. Our existing as well as new customers will benefit from a broader range of products coupled with our well-established excellent customer service. This transaction strengthens Sappi's specialties and packaging papers business both in Europe and globally, improves our profitability, and is another significant milestone towards realizing our Vision2020 goal."

Further information can be found online. 

The Cham Paper Group Holding AG is a leading manufacturer of coated specialty papers. The company was founded in 1657. Following the divestment of the paper business, the company will focus on its real estate business and will operate under the name Cham Group.

The Carmignano Mill (Carmignano di Brenta, Padua, Italy) is a non-integrated paper mill with two paper machines. The plant can produce 100,000 metric tpy of paper and employs 223 people. Paper grades include C1S FlexPack, C1S Label Papers, Wet Glue and Self-Adhesive applications, and base paper for metallization.

The Condino Mill (Borgo Chiese, Trento, Italy) is a non-integrated paper mill, with one paper machine. The mill employs 127 employees and can produce 60,000metric tpy of paper. Paper grades include glassine (silicone base paper) and super calendared, uncoated flexible packaging papers.

Digital Imaging Business (Cham, Canton Zug, Switzerland) is a finishing plant located in Cham Switzerland, in a 4,000 sq. meter industrial warehouse where the base paper from Condino or Carmignano mills are converted to produce 12,000 metric tpy of digital imaging paper. The business employs 35 people.