Kemira Oyj will acquire all shares in Finnish Chemicals Oy from Erikem Luxembourg S.A., the acquisition vehicle for private investors led by PPM Ventures together with Montagu Private Equity and MB Funds. Finnish Chemicals has net sales total nearly EUR 250 million. The cash and debt free prize of the shares is EUR 345 million and the acquisition is estimated to positively effect Kemira's result per share from the first full year on. Through this deal Kemira will rise to be number two globally as a chemical supplier to the pulp and paper industry.
The acquisition is in line with Kemira's business strategy whereby the Group will develop all the four core business areas equally, the strategic business units being pulp and paper chemicals, water treatment chemicals, industrial chemicals, and paints and coatings. Kemira will focus on developing profitability, secondly on expansion, on building up the Group's leading position, and on synergy between the Group's businesses. We expect the deal to have a positive effect also on Kemira's water treatment business, CEO Lasse Kurkilahti says.
The main products of Finnish Chemicals are sodium chlorate, sodium hydroxide, chlorine oxide, and sodiumborohydride. Through this deal Kemira will gain the position of the sole full range supplier to the pulp bleaching process globally. Kemira's position as the strategic partner to leading pulp and paper producers will be further enhanced. The technologies and the competencies of personnel in Kemira and Finnish Chemicals complement each other exceptionally well. This will give us access to an increasing share of future growth in the business, says Juhani Lindholm, President of Kemira's Pulp and Paper Chemicals SBU. The acquisition price can be considered reasonable, in view of the company's operating margin and the synergy benefits which we expect to gain for our businesses through this deal, says Juhani Lindholm.
Finnish Chemicals sells more than 80 % of the company's products to pulp and paper production, the main product being sodium chlorate used in pulp bleaching. The company's share in the European sodium chlorate market totals below 40 % and a good 20 % in the US. The company's products are used in other industrial processes also, e.g. in water treatment.
Finnish Chemicals has five production plants and the company employs 470 persons in Finland and in the US. The company's Finnish plants are located in Joutseno, Kuusankoski and Äetsä. The US-sites operate in Augusta (GA) and Eastover (SC)
The turnover of Kemira's pulp and paper chemicals business after the acquisition is approximately EUR 810 million.
The deal is subject to approval by authorities.
For further information, please contact:
Kemira Oyj
Juhani Lindholm, President, Pulp & Paper Chemicals
Tel. +358 (0)10 862 1606, gsm +358 (0)50 553 4931
Michael Strand, Vice President, Pulp & Paper Chemicals, Mergers & acquisitions
Tel. +358 (0)10 862 7285, gsm +358 (0)50 69 285
Please find presentation attached on the following link: