Billerud to acquire UPM-Kymmene’s packaging paper business

Billerud Finland Oy, a wholly-owned subsidiary of Billerud AB, has signed an agreement with UPM-Kymmene (UPM) to acquire UPM’s packaging paper business in Pietarsaari and Tervasaari with sales of approximately € 220 m in 2011. Billerud pays € 130 m for the business. The acquisition includes one paper machine in Pietarsaari and one paper machine in Tervasaari, both in Finland.

The machines produce packaging paper (sack/kraft paper) used in a broad range of areas such as food, retail, construction and other industries. Annual production capacity is approximately 300,000 tonnes. The business has approximately 185 employees. The acquired business achieved sales of approximately € 220 m and EBITDA of approximately € 18 m in 2011 (pro forma). The acquisition is subject to applicable regulatory clearances.