Kemira Oyj: Kemira Oyj reinforces its global leadership position in pulp and
paper chemicals by acquiring AkzoNobel's paper chemical business
Stock Exchange Release
July 8, 2014 at 9.00 am (CET+1)
Kemira has reached a preliminary agreement to acquire AkzoNobel's global paper
chemicals business. The parties will also enter into a distribution agreement
for AkzoNobel's colloidal silica business for retention and drainage
applications for the paper industry. The closing of the intended transaction
is expected in the first quarter of 2015 and is subject to customary closing
conditions, including completion of employee consultation proceedings and
approvals of competition authorities in certain countries. The Enterprise
Value of the transaction for AkzoNobel's paper chemicals business is EUR 153
AkzoNobel's paper chemicals business includes products for retention and
sizing, as well as other paper chemicals, including wet strength and coating
products. In 2013, revenues of the purchased paper chemicals business were EUR
243 million (EMEA 40%, Americas 30% and APAC 30%). Over 50% of the revenues
were related to the packaging board grades. Operative EBITDA of the purchased
business in 2013 was EUR 23 million. Kemira expects more than EUR 15 million
of annual synergies by the end of 2016 with the acquisition.
"Kemira is the global leader in the development, application expertise and
supply of chemicals for the pulp and paper industry. This acquisition is a
major step in implementing our growth strategy and it significantly enhances
our position, especially in the packaging and board industry and strengthens
our presence in the Asia-Pacific region. This also demonstrates our commitment
to the industry by diversifying our offering to our customers around the
world. AkzoNobel's paper chemicals are a great fit for Kemira, and we expect
to achieve significant technological and financial business synergies," says
Jari Rosendal, Kemira's President and CEO.
"We are very pleased to announce this preliminary agreement. Kemira is a
well-established player in this market and with the sale of our Paper Chemical
business we are following through with our strategy to focus on leading
position," commented AkzoNobel CEO Ton Büchner. "This divestment enables our
Pulp and Performance Chemicals business to focus on its core activities."
For more information, please contact
Jari Rosendal, President and CEO
Tel. +358 10 862 1801
Matti Lapinleimu, VP, Mergers & Acquisitions
Tel. +358 10 862 1786
Tero Huovinen, VP, Investor Relations
Tel. +358 10 862 1980
Kemira is a global chemicals company serving customers in water-intensive
industries. We provide expertise and chemicals that improve our customers'
water, energy and raw material efficiency. Our focus is on pulp & paper, oil &
gas, mining and water treatment. In 2013, Kemira had annual revenue of EUR 2.2
billion and around 4,500 employees. Kemira shares are listed on the NASDAQ OMX
Helsinki Ltd. www.kemira.com
Link to the release
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the content, accuracy and originality of the information contained therein.
Source: Kemira Oyj via Globenewswire
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