H2 acquires Norske Skog Parenco and recovered paper business
(Thomson Reuters ONE) -
Norske Skog has entered into an agreement to sell its paper mill Parenco in
Renkum in the Netherlands and the global recovered paper business, Reparco, to
investment firm H2 Equity Partners. Norske Skog expects to release cash from the
transaction in the order of EUR 30 millions. The transaction is part of the
effort to reduce Norske Skog's net debt. H2 sees good growth opportunities for
the mill, and will consider conversion of the mill to produce packaging paper.
- The sale is part of our strategy to improve Norske Skog's cash flow and
financial position. Profitability at Parenco has been a challenge for a long
time, and we have considered both sale and closure of the mill. We are very
pleased to be able to sell to a company with long-term plans for the overall
operations at Parenco, says President and CEO in Norske Skog, Sven Ombudstvedt.
- We are happy that we can bring the good news that this company, with its 100
years of history, can continue to operate. It is a good, well positioned paper
mill, with well-motivated, expert staff, modern equipment, and it is
geographically well situated. The sourcing of raw material from Reparco adds
strategic value. We see good growth opportunities for Parenco, mainly driven by
the substitution to higher quality magazine paper grades as well as the on-going
growth in relevant publishing segments such as door-to-door retail folders. It
is our ambition to create a healthy company with high quality, sustainable
products and a defendable market position, in line with the overall mission of
H2 Equity Partners to build better businesses, says Harmen Geerts, partner at H2
Equity Partners.
Deliveries to existing customers will be effectuated according to current
agreements. H2 will establish a commercial team and network of sales agents at
Parenco, as the current Norske Skog sales organisation only will support Parenco
for a limited time. The transaction will have little operational impact on the
rest of Norske Skog. Norske Skog will remain a significant producer of newsprint
and magazine paper in Europe with production facilities in Norway, Germany,
France and Austria.
Parenco currently operates one of its two paper machines. H2 will look into new
markets that may be served with the now idle second paper machine. This market
orientation will take 6-12 months. However, should there be no viable future for
operating a second machine, the machinery would remain idle, and Parenco would
restructure the organization to align current staffing with market conditions.
H2 has secured support for its approach from both the works council and the
trade unions.
The sale will be finalized and recognised in the third quarter of 2012. The sale
is subject to merger control approval in the Netherlands. The works councils of
Parenco and Reparco have already given a positive advice on the sale to H2.
H2 will appoint Frans Versteeg, an experienced senior executive who is currently
acting as Parenco's interim general manager, as the new managing director of
Parenco. Kurt Martens will stay on as managing director of Reparco.
H2 Equity Partners (H2) is an independent private equity firm founded in 1991,
with offices in Amsterdam, Cologne and London. H2 focuses on turnaround and
growth investments in medium-sized companies in Benelux, Germany and UK.
Lysaker, 2 August 2012
Norske Skog, Communications and Public Affairs
And
H2 Equity Partners
For further information:
Norske Skog media: Norske Skog financial market:
Vice President Corporate Communication
Vice President Investor Relations
Carsten Dybevig Tom Rogn
Mob: 917 63 117 Mob: 948 55 659
For H2 Equity Partners:
Ingo Heijnen
Phone: +31 65 586 79 04
or +31 20 404 47 07
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Norske Skog via Thomson Reuters ONE
[HUG#1631307]
Unternehmensinformation / Kurzprofil:
Datum: 02.08.2012 - 07:03 Uhr
Sprache: Deutsch
News-ID 170995
Anzahl Zeichen: 5014
contact information:
Town:
Lysaker
Kategorie:
Business News
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