South African pulp and paper firm Sappi has acquired specialty paper business of Cham Paper Group for CHF146.5m ($149m).
The deal, which was signed in December 2017, involves acquisition of CPG’s Carmignano and Condino Mills in Italy; digital imaging business in Cham, Switzerland; and all brands and know-how.
The acquisition is a part of the Sappi’s diversification strategy and 2020 goal to grow in higher margin growth segments.
Sappi said that the acquisition adds 160,000 tons of specialty paper to its capacity as well as strengthens its specialties and packaging papers footprint and skills.
Additionally, the purchase is said to increase Sappi’s relevance in specialties and packaging papers as well as open up new customers and markets to Sappi’s existing products.
Sappi CEO Steve Binnie said: “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 specialties and packaging papers business both in Europe and globally, improves our profitability and is another significant milestone towards realizing our Vision2020 goal.”
Sappi said that the purchase will also help in accelerating innovation and new product development as well as provide improved near-term profitability and serve as platform for organic growth and further acquisitions.
The acquisition also unlocks the growth potential of the CPG specialty paper business for Sappi.
Earlier, Cham Paper said in a statement: “Although Cham Paper Group's profitable specialty paper business is well positioned today, it is still too small to develop its market position on its own in the long term.”
In this regards, Cham Paper sought to sell its specialty paper business and focus on its real estate business.