Valmet has entered into an agreement to acquire Körber Group's Business Area Tissue. The Business Area Tissue specializes in innovative converting and packaging technologies and services for the tissue industry.

By combining the complementary offering and competences of Valmet and the acquired business, Valmet creates the markets' widest technology, automation and services offering for the growing tissue industry covering the entire tissue value chain. Growth in tissue demand is driven by several favourable trends such as increased hygiene awareness and standards of living.

Körber's Business Area Tissue offers process technologies and related services for converting the jumbo reels of tissue paper into final tissue products for consumers and the Away from Home segment. It has the broadest offering in the tissue converting industry with converting lines for tissue rolls and for folded tissue including product packaging, as well as services and digital solutions.

In 2022, Körber's Business Area Tissue's net sales amounted to Euro 305 million and its adjusted EBITDA margin was approximately 12%. The company has a strong and growing services business, which accounted for 36% of total net sales in 2022. The business employs around 1,170 employees in Italy, Brazil, the U.S., China and Japan.

The enterprise value of the acquisition is approximately Euro 380 million on a cash and debt free basis subject to ordinary post-closing adjustments. The acquisition is estimated to be completed at the earliest on November 2, 2023, subject to competition authority approvals. The transaction consideration will be paid in cash upon the completion. Valmet will finance the acquisition with debt.

Valmet estimates that the acquisition will bring sales, service and cost synergies worth of Euro 8 million by the end of 2026. The acquired business will be integrated into Valmet's Paper business line as a separate business unit. In Valmet's reporting, the process technology part of the business will be consolidated to Paper business line and the services part to the Services business line.