Arctic Paper Agrees to Buy Grycksbo Paper Mill
Dec. 8, 2009 - Arctic Paper said that it has signed a purchase agreement for the acquisition of the paper mill Grycksbo Paper in Sweden from the investment fund Accent Equity 2003.
Under the terms of the deal, Arctic Paper will acquire 100 percent of the shares of Grycksbo Paper Holding AB, the sole owner of Grycksbo Paper.
The total consideration, including cash payment and the issue of shares to Accent Equity, is between SEK 590 – 640 million, Arctic Paper said.
The transfer of Grycksbo shares to Arctic Paper is scheduled for March 1, 2010.
With the purchase, Arctic Paper increases its production capacity to more than 800,000 tonnes per year.
“Our strategy is growth, both organically and by acquisitions,” said Micha? Jarczynski, president and CEOof the Management Board of Arctic Paper S.A.
“It is also our strategy to hold strong positions in both the coated and uncoated European fine paper market and we have been interested in acquiring Grycksbo for a long time,” Jarczynski added.
Jan Ohlsson, CEO of Accent Equity Partners AB, advisor to Accent Equity 2003, noted, "When Accent acquired Grycksbo Paper in 2006 the idea was to be active in the restructuring of the fine paper industry. Now Accent has done its part. Grycksbo Paper was too small as a stand alone company going forward. Therefore Grycksbo Paper fits very well into the Arctic Paper family. In addition, Grycksbo will have better access to the capital market, being part of a publicly listed company. This deal brings Grycksbo and its employees the best possible structure to meet the future.”
Grycksbo is a fine paper mill in the Dalecarlia region of Sweden. It has an annual production capacity of 260,000 tonnes of coated fine paper and is characterized by high efficiency in terms of both production and energy consumption.
Since early 2009, Grycksbo has been producing a portion of the Arctic branded product range for Arctic Paper — about 25 percent of Grycksbo's capacity.
About Arctic Paper
Arctic Paper is the second-largest European producer of bulky book paper in terms of production volume, and one of Europe’s leading producers of fine graphic paper. The Group produces many types of uncoated wood-free paper and uncoated wood-containing paper.
The Group has three paper mills: Kostrzyn, Poland; Munkedal, Sweden; and Mochenwangen, Germany. The total production capacity of the three paper mills in the Group is 540,000 metric tonnes of paper per year.
SOURCE: Arctic Paper S.A.