BRAZIL - Finnish company Ahlstrom-Munksjö has agreed to acquire MD Papéis’ paper mill in Caieiras, Brazil from Formitex Group. This plant manufacturs décor papers, filters, self-adhesive, and flexible packaging. It has an installed capacity of 72 thousand tons / year and is located in the city of Caieiras.

Annual net sales of the mill to be acquired are approximately 80 million euros and the debt-free purchase price approximately 100 million euros. Financing for the acquisition has been agreed with Banco Citibank.

The MD Papeis mill is located close to Ahlstrom-Munksjö’s existing production plants in Brazil, near Sao Paulo. It will significantly strengthen Ahlstrom-Munksjö’s product offering, as it gives the Finnish company access to local production of decor paper, while further strengthening its position as a global leading supplier in tape.

“The MD Papeis business is an excellent addition to our global platform and drives our ambition to maintain a leading position in selected niches of the global fibre-based solutions market that offers growth,” says Hans Sohlström, president and CEO of Ahlstrom-Munksjö.

Ahlstrom-Munksjö’s presence in Brazil grows further through the acquisition, operating three plants, all near Sao Paulo, and employing over 700 persons and revenues of approximately of EUR 200 million.

The transaction is expected to be completed in the third quarter of 2018 and is subject to customary completion terms, including clearance from the relevant competition authorities.