South African pulp and paper firm Sappi has agreed to acquire the specialty paper business of Cham Paper Group for CHF146.5m ($149m).
Under the terms of the deal, Sappi will purchase CPG’s Carmignano and Condino Mills located in Italy, digital imaging business in Cham, Switzerland as well as all brands and know-how.
Scheduled to be completed during the first calendar quarter of 2018, the deal is subject to approval from certain competition authorities.
The acquisition is expected to add 160,000 tons of specialty paper to Sappi’s capacity as well as support the firm’s diversification strategy and 2020 goal to grow in higher margin growth segments.
Sappi CEO Steve Binnie said: “This acquisition further strengthens Sappi’s specialty paper business both in Europe and globally by combining Cham’s strong brands and assets with Sappi’s global reach.
“This transaction will increase profitability and unlock the significant growth and innovation potential inherent within the specialty paper market.”
CPG’s specialty paper business, however, will continue to operate separately until clearances are obtained from the authorities.
Sappi Europe CEO Berry Wiersum said: “The products and brands which have been acquired are an excellent complement to our market offering, enabling us to offer our existing, as well as new customers in Europe, North America and globally, a broader range of products coupled with excellent customer service.”