Korsnas Enters Agreement with Billerud to Merge
From left: Christer Simren, President and CEO of Korsnas and Per Lindberg, President and CEO of Billerud.
June 26, 2012 - Investment AB Kinnevik (Kinnevik) on June 20 announced that it signed an agreement with Billerud AB regarding a merger between its wholly owned subsidiary, Korsnas, and Billerud.
The combined company will be named BillerudKorsnas with headquarters in Stockholm, Sweden.
Per Lindberg, the current CEO of Billerud, will be CEO and President; Christer Simren, the current CEO of Korsnas, will be COO; and Susanne Lithander, the current CFO of Billerud, will be CFO.
Korsnas said in a statement: "The merger between Korsnas and Billerud is a natural step to strengthen Korsnas and Billerud's successful businesses in virgin fiber packaging material with the aim to create a leading international player within the packaging industry. Kinnevik intends to be an active owner in the new company. Korsnas and Billerud and their respective main owners identify significant synergy potential which is expected to be realised within the next few years as a result of the transaction. The synergy potential has been assessed to at least SEK 300 million annually in a preliminary estimate.
Completion of the transaction is subject to customary approvals from relevant competition authorities and the approval of the shareholders of Billerud at an Extraordinary General meeting expected to be held in August 2012.
Complete details of the proposed merger can be found at: www.korsnas.com or www.billerud.com
Billerud produces: Kraft paper, Sack paper, Fluting, Liner, Liquid board, Cup Stock, and Nordic long-fibre bleached sulphate pulp.
Korsnas operates three paper mills with integrated pulp production facilities.The company has a total annual capacity of 1.1 million tonnes of cartonboard and paper, with about 90 percent of sales to the export market.