Kostrzyn, Poland, 08 December 2009 -- Arctic Paper S.A., listed on the Warsaw Stock Exchange, has signed a purchase agreement to acquire the Grycksbo Paper mill in Sweden from the investment fund Accent Equity 2003.
Arctic Paper will acquire 100% of the shares of Grycksbo Paper Holding AB, sole owner of the paper mill Grycksbo Paper. The total consideration, comprising cash payment and issue of shares to Accent Equity, is SEK 590–640 million. Transfer of Grycksbo shares to Arctic Paper S.A. will take place on 01 March 2010. With the purchase, Arctic Paper increases its production capacity to more than 800,000 metric ton per year.
Grycksbo is a fine paper mill in the Dalecarlia region of Sweden. It has an annual production capacity of 260,000 metric tons of coated fine paper and is characterized by high efficiency in terms of both production and energy consumption. Since early 2009, Grycksbo has been producing part of the Arctic branded product range on behalf of Arctic Paper, accounting for 25% of Grycksbo’s capacity.
“Our strategy is growth, both organically and by acquisitions,” said Michał Jarczyński, CEO and president of the management board of Arctic Paper S.A. “It is also our strategy to hold strong positions in both the coated and uncoated European fine paper market and we have been interested in acquiring Grycksbo for a long time,” he said.
“Arctic Paper is financially strong. In October this year, we had a successful listing on the Warsaw Stock Exchange. Our industry sector has had some difficult years recently and profitability has generally been weak. However, Arctic Paper is highly profitable and our sales are growing. After the third quarter this year we announced a very strong financial result,” Jarczyński said.
“With this acquisition, we will expand our product range and further broaden our array of strong brands. Arctic Paper will even further strengthen its position as one of Europe’s leading producers of fine paper and bulky book paper. We will continue to invest in Grycksbo’s highly acclaimed G-Print brand, just as we will in all our other well-known brands,” said Hans Karlander, marketing and sales director and member of the management board of Arctic Paper S.A.
”When Accent acquired Grycksbo Paper in 2006, the idea was to be active in the restructuring of the fine paper industry. Now Accent has done its part. Grycksbo Paper was too small as a stand alone company going forward. Therefore Grycksbo Paper fits very well into the Arctic Paper family," said Jan Ohlsson, CEO of Accent Equity Partners AB, advisor to Accent Equity 2003. "In addition, Grycksbo will have better access to the capital market, being part of a publicly listed company. This deal brings Grycksbo and its employees the best possible structure to meet the future”, Ohlsson said.
The Group has three paper mills, in Kostrzyn, Poland; Munkedal, Sweden; and Mochenwangen, Germany. The total production capacity of the three paper mills in the Group is 540,000 metric tons of paper per year.
- The Kostrzyn mill has a production capacity of 265,000 metric tons annually and produces chiefly uncoated wood-free paper for general printing uses, such as printing of books, brochures, and forms, for making envelopes and other paper products.
- The Munkedal mill has a production capacity of 160,000 metric tons per year and produces mainly uncoated wood-free paper chiefly used for printing books and high-quality brochures.
- The Mochenwangen mill has a production capacity of about 115,000 metric tons per year and produces chiefly uncoated wood-containing paper used primarily for printing books and flyers.
The Arctic Paper Group employs a total of nearly 1100 people. Currently, the Group has 15 sales companies, providing it access to all European markets and allowing it to obtain 1/5th of the European market for bulky book paper. The headquarters of the international Group are in Kostrzyn, Poland. For additional information, visit www.arcticpaper.com.
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Grycksbo Paper manufactures a unique coated wood-free paper that is well known for its high bulk and superior runnability. Customers include wholesalers, printers, publishers, and converters. Approximately 93% of production is exported, mainly within Europe. Main applications are direct mail, illustrated books, manuals, catalogues, maps, posters, magazines, and packaging. Production capacity is approximately 260,000 metric tons per year. The company’s sales are SEK 1.7 billion, and it employs some 470 people. For additional information, visit www.grycksbopaper.com.
Accent Equity is a group of private equity funds focusing on investments in lower mid-market buyout and later-stage expansion capital transactions in the Nordic region. Since the mid-1990s, the Accent team has advised six funds and carried out 55 buyouts and 40 exits. Accent Equity Partners is an advisor to funds with a committed capital of about SEK 10 billion. Accent invests in well-established Nordic companies with a clear potential for value creation via strong growth, operational improvements. and strategic development. For additional information, visit www.accentequity.se.
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