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Sappi to acquire Cham Paper’s speciality paper assets
Posted on Wednesday, 06 December 2017 08:11
South African Sappi is buying the speciality paper business of Switzerland-based Cham Paper Group Holding for CHF 146.50 million (USD 148.52 million).

The dissolving wood pulp manufacturer will finance the transaction with existing cash.

Completion is expected during the first quarter of 2018, subject to approvals from certain competition authorities.

After closing, the SIX Swiss Exchange-listed target will be renamed Cham Group and move away from manufacturing coated papers, focusing instead on its real estate business.

The deal will include Cham Paper’s brands and its digital imaging division, which comprises a factory in Cham, Switzerland which employs 50 people and churns out up to 12,000 tonnes of digital imaging paper.

Sappi will also gain two Italian mills named Condino and Carmignano, which, between them, have 330 employees, three paper machines and a speciality paper production capacity of 160,000 tonnes.

The Johannesburg-headquartered acquiror has over 12,000 employees and global manufacturing facilities: eight in Europe, three in America and five in South Africa.

Founded in 1936, the firm sells its products in over 150 countries and reported profit of USD 338.00 million for the year ending September 2017, up from the USD 319.00 million posted for 2016.

This improvement can be attributed to lower interest charges and the continued implementation of cost-cutting initiatives.

Chief executive Steve Binnie said the purchase will strengthen its speciality paper business “both in Europe and globally, by combining Cham’s strong brands and assets with Sappi’s global reach”.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 94 deals targeting paper (except newsprint) mills announced worldwide so far this year.

The most valuable such transaction was US cellulose fibres manufacturer Rayonier Advanced Materials’ USD 866.00 million increased takeover bid for Canada-based Tembec, which completed last month.

© Zephus Ltd