May 4, 2021 - Ahlstrom-Munksjö is exploring strategic options for its Decor business, including the possibility of divesting the business. The review process, first announced on September 17, 2019, has been impacted by the Covid-19 outbreak.
In 2020, the Decor business saw strong customer demand with tailwinds from increased consumer spending on furniture and domestic refurbishments as a consequence of structural changes related to working from home accelerated by the Covid-19 pandemic. For the full year, comparable EBITDA increased, partly driven by higher raw material efficiency, and reached 14% of sales in the fourth quarter.
In the past months, Ahlstrom-Munksjö has progressed with the carve-out of Decor with the objective of enabling the business to operate as a stand-alone entity. Decor has also been discussing opportunities for partnering with leading Chinese suppliers to create a more global leader with strong presence in Europe, South America and Asia.
As the acquisition of Ahlstrom-Munksjö by the Bain Capital-led consortium has now been completed and the carve-out activity and dialogue with potential partners in China is progressing, Ahlstrom-Munksjö is reactivating the process to identify the interest of capital investment in the Decor business and find the best path to develop Decor's full potential.
"With the aim to strengthen our platform of businesses, Ahlstrom-Munksjö regularly assesses what is the best structure of its businesses," said Hans Sohlström, President and CEO of Ahlstrom-Munksjö. "Our goal remains to accelerate the development of Decor into a stand-alone market leader, and we are open to the possibility that a new owner, fully focused on this business, may be best positioned to accomplish such an objective.
"New capital will also allow further investments to enhance Decor's operating performance and enable expansion through acquisitions and mergers in China," Sohlström added.
Ahlstrom-Munksjö is a global leader in fiber-based materials. Products include: filter materials, release liners, food and beverage processing materials, decor papers, abrasive and tape backings, electrotechnical paper, glass fiber materials, medical fiber materials and solutions for diagnostics as well as a range of specialty papers for industrial and consumer end-uses. To learn more, visit: www.ahlstrom-munksjo.com.
Read a related article on PaperAge.com:
Ahlstrom-Munksjö Explores Strategic Opportunities for Its Decor Paper Business - Sept. 17, 2019.
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