Arjowiggins has signed an agreement with Italian group Favini concerning the sale of its Casting Paper commercial business including dedicated finishing equipment for an amount of €26.5 million.
The transaction also involves an exclusive long term agreement whereby Arjowiggins Creative Papers will supply Favini with base paper and coated paper for a minimum period of five years. HR procedures are under way with the employees and their representatives and the transaction should complete in December.
The Casting paper business is part of the Arjowiggins Creative Papers division. It generates annual sales of approximately €33m and employs around 15 people in marketing and sales. Casting paper is manufactured at the Stoneywood mill in the UK and used to produce synthetic leather for the automotive, fashion and furniture industries.
This sale is consistent with Sequana's strategy of taking part in the necessary consolidation of the paper industry and proceeds from the sale will help reduce the Group’s debt.
Commenting on the sale, Pascal Lebard, Chairman and Chief Executive Officer of Sequana and Chairman of Arjowiggins, said: “Casting paper is a sector in which size is key. By selling this business to Favini, we are enabling it to develop and grow as part of a group that will be a leading player in this market. Moreover, the exclusive agreement with Favini to supply base paper and coated paper will allow us to continue leveraging the technical and industrial expertise of our teams.”