Regulators Approve Billerud's Acquisition of UPM's Packaging Operations in Finland
May 22, 2012 - Billerud said that regulatory authorities have approved its acquisition of UPM's packaging paper operations at UPM's Pietarsaari and Tervasaari mills. Billerud Finland Oy is a wholly owned subsidiary of Billerud AB.
The purchase price is about EUR 130 million.
"The acquisition strengthens our offering in packaging paper and provides us with a strong platform for the further development of smarter packaging solutions," said Per Lindberg, President and CEO of Billerud. "Also, the acquisition sharply reduces our pulp exposure as we will purchase an annual pulp volume corresponding to around 85% of Billerud's present pulp sales volume.
"We also reduce our currency exposure,” Lindberg added.
The deal involves Billerud taking over one paper machine at Pietarsaari and one at Tervasaari — both in Finland. The machines manufacture various packaging papers (sack/kraft paper) which are used in the food, retail, construction and other industries.
Billerud expects to close the deal during the second quarter of 2012.
See related story:
» Billerud Agrees to Acquire Packaging Paper Production at Two UPM Mills (2/1/2012)