Billerud is set to acquire UPM's packaging paper business for a total consideration of €130m. A purchase agreement has already been signed and the transaction is scheduled for completion in the second quarter 2012, say parties involved
The deal includes two paper machines at UPM's Pietarsaari and Tervasaari mills in Finland, offering a total annual production capacity of 300,000 t of sack and kraft papers. The parties have also agreed on a long-term pulp and energy supply agreement. According to the Swedish packaging paper company, the acquisition will reduce Billerud's pulp exposure and strengthen its offering within the packaging paper business.
The mills' real estate and key infrastructure in both location remains property of UPM, says UPM. Pulp production in Pietarsaari and label paper production at the other two paper machines in Tervasaari will also stay part of UPM's business and are to be continued.