Sappi Limited recently announced the acquisition of speciality paper business of Cham Paper Group Holding AG (CPG) and its conclusion.
The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy, its digital imaging business located in Cham, Switzerland as well as all brands and know-how.
The acquisition:
- Supports Sappi’s diversification strategy and 2020 vision to grow in higher margin growth segments.
- Strengthens Sappi Europe’s specialities and packaging papers footprint and skills, adding 160,000 tons of speciality paper to the company’s capacity.
- Increases Sappi’s relevance in specialities and packaging papers, opening up new customers and markets to Sappi’s existing products and generating economies of scale and synergies.
- Ensures the gaining of greater share-of-wallet with valued brand owners; accelerating innovation and new product development.
- Improves near-term profitability and serve as a platform for organic growth and further acquisitions.
- Builds on the investments currently underway to increase specialities and packaging papers capacity at the Somerset, Maastricht and Alfeld Mills.
- Unlocks the growth potential of the CPG speciality paper business.
Commenting on the transaction, Steve Binnie, chief executive officer of Sappi Limited, said, ‘I am very pleased that we have been able to finalise this acquisition so quickly. We are now able to move with speed to combine Cham’s strong brands, employees and assets with Sappi’s global presence. Our existing as well as new customers will benefit from a broader range of products coupled with our well-established excellent customer service. This transaction strengthens Sappi’s specialities and packaging papers business both in Europe and globally, improves our profitability and is another significant milestone towards realising our Vision2020 goal.’
