Powerflute says Corenso deal will put the company on a solid footing for further growth.
Stora Enso has concluded the planned sale of its coreboard and cores division Corenso to Powerflute. For Stora Enso, the transaction reflects greater focus on its core business while Powerflute views the acquisition of Corenso as a significant addition to the company and a step in line with its objective of expanding in attractive, specialty markets for paper and board
Corenso has a total capacity of 290,000 tpy of coreboard and 265,000 tpy of of cores, tubes and edge protectors. The company generated sales of €211m and had €26m in earnings before interest and taxes (EBIT) in 2013. In the first three quarters of 2014, Corenso's net sales were €146m and operational EBIT €14m, Stora Enso said.
According to Powerflute, the price agreed for the purchase of Corenso, on a cash free and debt free basis, with normalised working capital and before taking account of the presence of minority interests, was €90m. "After taking into account the preliminary valuation attributed to minorities of €8.1m and the initial estimate of net cash acquired and adjustments required to net working capital of €20.4m, the price paid for Corenso at closing was €102.3m," the company said.
