Cham Paper to Sell Italian Paper Mills to Delfort Group

July 15, 2013 - The Cham Paper Group said that it has agreed to sell its Italian paper mills located in Carmignano and Condino to Delfort Group.

The enterprise value of the deal amounts to approx. EUR 86 million and includes financial liabilities of approx. EUR 45 million, which will be assumed by Delfort. The net purchase price will be paid in cash.

As agreed by both parties, further details of the share purchase agreement will not be disclosed.

Cham said that with completion of the sale, it is exiting base paper production.

Based in Traun, Austria, Delfort Group produces and distributes specialty papers and has about 1,750 employees at five manufacturing plants in Austria, Hungary, the Czech Republic and Finland.

In a press statement, Cham paper said, “During the last few months, the Board of Directors of the Cham Paper Group has been evaluating strategic options which, after the comprehensive restructuring of the last 18 months, bring back sustainable growth to the specialty paper business. To integrate the two complementary Italian mills into the Delfort Group was found to be the promising option.”

The deal is subject to regulatory approval.

Cham Paper expects to close the deal in the fourth quarter of this year.

Cham Paper said that its business in Switzerland will not be affected by the divestment of the Italian mills.

Since the start of 2013, Cham's manufacturing focus in Switzerland has been on finishing (coating technology) of external base paper as well as the development, commercial launch and distribution of high-grade product groups and services.

Cham Paper Group is a leading manufacturer of coated speciality papers. For more information visit: www.cham_group.com.

SOURCE: Cham Paper Group