The merger will create a global leader on the markets for decor papers, filtration materials, release liners and specialties, according to the companies involved.
The Board of Directors of Ahlstrom Corporation and Munksjö Oyj have announced a proposed combination of the two companies. The combined company is expected to have preliminary annual net sales of approximately €2.2bn and an adjusted EBITDA of €249m.
"The combination will be implemented as a statutory absorption merger whereby Ahlstrom will be merged into Munksjö," the companies said. For each share in Ahlstrom, the company's shareholders will receive 0,9738 new shares in Munksjö. Upon the completion of the merger, this will correspond to a 47,2% share in the combined company.
The merger is expected to be completed at the start of the second quarter 2017. The completion of the merger is subject to approval by the companies' shareholders and relevant competition authorities.
Through the combination of businesses Munksjö is said to become "a global leader in sustainable and innovative fiber-based solutions" with leading positions in the areas of decor, filtration and release liners. The combined company will have 6,200 employees and run 41 production and converting facilities in 14 countries worldwide. The two companies reportedly have complementary customer bases, product portfolios and geographical footprints: Munksjö holds strong market position in Europe and South America and Ahlstrom has strong positions in Europe, North America and Asia.
Munksjö and Ahlstrom are both focusing on "sustainable and innovative fiber-based solutions and materials." The companies have been jointly operating a production facility in Italy since the combination of Munksjö AB and Ahlstrom's Label and Processing division three years ago.