M-real to Divest Premium Paper Business
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M-real Corp., Finland, part of Metsäliitto Group, this week signed a Memorandum of Understanding regarding a divestment of its Premium Paper business to a sister company of Papierwerke Lenk AG, Germany. The divestment would include the complete Premium Paper business and related assets as well as about 100 of M-real's employees.
Premium Paper products are used in high quality graphical end-uses, such as letterhead, brochures, books, calendars, and envelopes. M-real will continue the carbonless business at the Reflex mill.
If the transaction is consummated as planned, M-real will book a negative EUR 12 million non-recurring item in the Specialty Papers business area. The cash impact would be approximately EUR 1 million negative. The planned divestment does not have a material impact on M-real's operating result. The transaction is expected to be closed during the second quarter.
"The planned divestment of Premium Papers is a natural step in M-real's strategy and a proof of M-real's capability to divest its non-core paper business consistently. We are satisfied with the good solution in which the Premium Paper business will be transferred to the new owner who can focus to develop this segment successfully in the future," said Mikko Helander, CEO of M-real.
In October 2010, M-real sold PM 5 and some related assets at the Reflex site to Metsä Tissue. Papierwerke Lenk AG is a German Black Forest based paper producer with sales of some 35.000 metric tpy of specialty papers capacity.
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