Paperlinx takes further restructuring steps, sells US paper operations to Central National-Gottesman
Lowering costs, raising funds from the disposition of assets and entering new non-paper markets are in the focus of Paperlinx's strategic review which is about to be finalised now.
Paper merchant Paperlinx will take further steps to conclude its strategic review, including the sale of its US operations of Spicers USA and Kelly Paper for $76m. The company said it entered into an agreement with pulp and paper marketer Central National-Gottesman Inc. to divest these assets. Central National-Gottesman said it would operate the two companies as they are and under their existing brands. Paperlinx explained it would retain its Spicers operations in Canada.
Moreover the EU authorities recently cleared the previously announced €45m sale of Paperlinx's Italian operation to Lecta, announced in March this year.
Paperlinx's Chairman, Harry Boon said: "The strategic review process focussed on reducing costs, strengthening the group's financial position and creating a sustainably profitable business. Critical to this was the need to raise funds from the disposition of assets."
In addition to having a lower cost base, Paperlinx also plans to sell a broader range of non-paper products, thus leveraging it existing logistic capability and customer relationships in its core business.
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