MEMPHIS, Tenn.–(BUSINESS WIRE)–Sylvamo (NYSE: SLVM), the global paper company, announces that it has agreed to acquire Stora Enso’s uncoated fine paper mill in Nymolla, Sweden, for 150 million euros (approximately 150 million) which are expected to be funded in cash, subject to customary purchase price adjustments. The deal includes the factory, the strong brands it produces and the people who make it happen.
The integrated mill has two pulp lines and the capacity to produce approximately 500,000 short tons of uncoated fine paper on two paper machines. In the past 12 months ending June 30, 2022, the facility generated €350 million in revenue. The mill produces several brands, including Multicopy, and paper used for office printing, business forms, digital printing, offset for book printing and more.
The Nymolla mill has an excellent environmental footprint, which complements Sylvamo’s aim to produce paper in the most responsible and sustainable way. The low-cost plant generates 85% of its energy needs from carbon-neutral renewable biomass residues.
“The Nymolla plant is part of our triple strategy of commercial excellence, operational excellence and financial discipline, as well as our commitment to maximizing value creation for Sylvamo’s shareholders”, said Jean-Michel Ribieras, Chairman and CEO. “We expect this acquisition will strengthen our fine uncoated product line, allow us to more effectively serve our customers in Europe and globally, and be immediately accretive to our earnings per share and free cash flow.
The Stora Enso leaders and team members who operate and support the mill will lend their expertise to Sylvamo to help the world fulfill paper’s promise to educate, communicate and entertain.
The transaction is expected to close no later than the first quarter of 2023 and is subject to customary closing conditions, including receipt of required regulatory approvals.
A presentation of the acquisition is available at investors.sylvamo.com.
Sylvamo (NYSE: SLVM) is the global paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We turn renewable resources into the papers people depend on for education, communication and entertainment. Based in Memphis, Tennessee, we employ more than 7,500 colleagues. Net sales for 2021 were $3.5 billion. For more information, please visit Sylvamo.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, with respect to our proposed acquisition of the Nymolla, Sweden plant, including, but not limited to, the strategic rationale and expected benefits of the proposed acquisition, the future financial and operating results of the assets to be acquired, and the expected timing of completion of the proposed transaction. Any or all of these forward-looking statements may prove to be incorrect, and our actual actions and results may differ materially from what they express or imply, as they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. These risks, uncertainties and other factors include, but are not limited to, the inability to obtain necessary regulatory approvals or satisfy any other conditions to closing the proposed acquisition on a timely basis; the occurrence of an event, change or other circumstance that may result in the termination of the purchase agreement; our failure to realize the benefits of the proposed acquisition; the effect of the announcement of the proposed acquisition on the target company’s ability to retain customers and key personnel and maintain supplier relationships; and other risks, uncertainties and other factors affecting us disclosed under “Risk Factors” and elsewhere in our reports and filings with the United States Securities and Exchange Commission (SEC), including our annual report on form 10-K and our quarterly reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022, available on our website, Sylvamo.com. The forward-looking statements contained in this press release reflect our current expectations, and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.