Paperlinx has confirmed that the sales of its Italian and US operations have been completed. The sales represent two key steps of Paperlinx’ plan to restore its profitability.
Back in February 2012, Paperlinx announced that next to restructuring its UK and Australian businesses, the European continental business was to be reviewed. Paperlinx aims at cutting costs, simplifying business structures and entering new non-paper markets and needs additional liquidity to execute this new strategy.
In March, the company announced the sale of its Italian business Polyedra to Lecta for €45m, representing over 90% of Polyedra’s book value. Moreover, it will close its corporate office in Milton Keynes in the UK. The move will see the office’s global marketing and global HR functions disbanded and integrated in the respective business units. In addition, the company’s CEO and CFO will in future be positioned at the Northampton, UK, offices.
Paperlinx’ latest move was the divestment of its US business operations Spicers Paper USA and Kelly Paper Company for US$76m. The paper wholesaler Spicers Paper owns 12 warehouses in the western and mid-western regions of the US. Kelly Paper, based in California, operates a chain of 48 paper stores in four western US states. The two companies generated combined sales revenue of around $500m in their last business year.
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