Billerud to merge with Korsnas to create all-Swedish packaging fibre giant
The deal will see Korsnas’ holding company, Kinnevik, sell its shares in the firm to Billerud for SEK 2.7bn and in return receive a 25% stake in Billerud as part of a rights issue.
The transaction, which comes amid a rising consolidation trend within certain sectors of the European packaging industry, is expected to be completed in the fourth quarter of 2012.
The deal is subject to the approval of the relevant competition authorities.
The firms said the merger would allow them to become more competitive and stressed the opportunities for annual savings of around SEK 300m.
The transaction would create a “company with leading positions in production and sales of liquid packaging board and other high-quality paperboard, containerboard and packaging materials,” said the partners.
”Together with Korsnäs, we are looking forward to creating a leading player within packaging materials with a solid platform for future growth,’ said Per Lindberg, Billerud president and CEO. “It is a Transaction with both industrial and a financial logic where the combined company will be very well positioned. Together we will be able to offer our customers a better and broader range of products. Korsnäs is the leader within its product areas which complements the product areas of Billerud and jointly the BillerudKorsnäs offering of smarter packaging solutions will be strengthened”