Sylvamo agrees to acquire a mill in Nymolla, Sweden
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MEMPHIS, Tenn.–( BUSINESS WIRE )– Sylvamo (NYSE: SLVM ), the world’s paper company, announces that it has agreed to acquire Stora Enso’s uncoated freesheet paper mill in Nymolla, Sweden, for EUR 150 million (approximately US$150 million) expected to be financed in cash, subject to customary purchase price adjustments. The deal covers the mill, 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 freesheet on two paper machines. In the last 12 months ending June 30, 2022, the facility generated €350 million in revenue. The mill produces several brands, including Multicopy, and papers used for office printing, business forms, digital printing, offset for printing books and much more.
Nymolla mill has an excellent environmental footprint, which complements Sylvamo’s aim to produce paper in the most responsible and sustainable ways. The low-cost mill generates 85% of its energy needs from carbon dioxide-neutral, renewable biomass residues.
“The Nymolla mill is in line with our three-pronged strategy of commercial excellence, operational excellence and financial discipline and our commitment to maximizing value creation for Sylvamos shareholders,” said Jean-Michel Ribiéras, Chairman and CEO. “We expect this acquisition to strengthen our uncoated free sheet product mix, enable us to serve customers across Europe and around the world more efficiently and be immediately reliable to our earnings per share and free cash flow.”
Stora Enso’s leaders and team members who operate and support the mill will bring their expertise to Sylvamo to help the world realize the promise of paper 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 obtaining required regulatory approvals.
A presentation about the acquisition is available at investors.sylvamo.com.
About Sylvamo
Sylvamo (NYSE: SLVM) is the world’s paper company with mills in Europe, Latin America and North America. Our vision is to be the best employer, supplier and investment. We transform renewable resources into newspapers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 7,500 colleagues. Net sales for 2021 were $3.5 billion. For more information, visit Sylvamo.com.
Forward-looking statements
This press release contains forward-looking statements pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, relating to our proposed acquisition of Nymolla, Sweden, including, but not limited to, the strategic rationale and anticipated benefits of the proposed acquisition, future financial and operating results of the assets to be acquired and the expected timing of the 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 other closing conditions to the proposed acquisition on a timely basis; the occurrence of an event, change or other circumstance that may cause the purchase agreement to terminate; 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 to maintain relationships with suppliers; and other risks, uncertainties and other factors affecting us disclosed under the heading “Risk Factors” and elsewhere in our reports and filings with the US Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and 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 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.
See the source version at businesswire.com: https://www.businesswire.com/news/home/20220914005993/en/
Investor: Hans Bjorkman, 901-519-8030, [email protected]
Media: Adam Ghassemi, 901-519-8115, [email protected]
Source: Sylvamo