Sappi Limited to Divest Three Graphic Paper Mills in Europe

SEATTLE (Scrap Monster): Sappi Limited announced that it has concluded an agreement with AURELIUS Investment Lux One S.a.r.l. on divestment of its three European graphic paper mills. Accordingly, the Maastricht Mill in the Netherlands, Stockstadt Mill in Germany and Kirkniemi Mill in Finland will be sold to AURELIUS Investment.

The company press release noted that the company had received binding offers from several parties and has decided to proceed with the offer from AURELIUS, following due process. The sale transaction is expected to close during the first quarter of 2023, subject to fulfilment of various standard suspensive conditions. The two parties have also agreed to enter into a transitional services agreement, in order to ensure smooth transition of the business.

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The enterprise value of the deal is estimated at around €272 million. The proceeds of the sale will be used to further reduce its debt. It must be noted that the three mills together had reported net loss after tax attributable to the net assets of €6.5 million in the previous year ended 31st March, 2022.

Commenting on the sale, Marco Eikelenboom, CEO of Sappi Europe hoped that the new owner would pursue to unlock the potential values of all the three mills. The company’s strategic focus is on market segments not served by these mills, he added.