HELSINKI, Finland, Jan. 8, 2020 /PRNewswire/ -- Stora Enso has signed an agreement to divest its sawn construction timber (KVH) mill at Pfarrkirchen in Germany, to the fund LEO II. - VV1 GmbH, managed by the private equity firm Dubag Group.
The divestment is part of Stora Enso's profit protection programme and it is in line with the Group's strategic transformation to focus on developing integrated mills for wood products production. Pfarrkirchen Mill has a good reputation on the market, is well equipped and holds a team of very competent personnel, but it is a non-integrated further processing mill. The new owner is in a better position to give the mill the attention it deserves and ensure a long-term development. The transaction is expected to be completed in the first quarter of 2020. The impact on Stora Enso's operational EBIT and net debt will not be material.
"We are proud that Stora Enso has chosen DUBAG Group and its LEO II. Fund as partner for a sustainable future of the KVH production site in Pfarrkirchen and for the carve-out from Stora Enso. The Pfarrkirchen site and its 90 employees have a long-lasting experience in the production of high quality KVH and we are looking forward to continue this successful history in the future," says Christoph Mödder, Partner at DUBAG Group.
The divestment is expected to reduce Stora Enso's annual sales by EUR 40 million. It will also reduce Stora Enso's KVH production capacity by approximately 145 000 m3.
About Dubag Group
The DUBAG Group is a specialised investment advisory firm based in Munich. The firm advises and manages private equity funds with a focus on the acquisition and active management of companies in special situations, such as corporate spin-offs. Currently, DUBAG Group is investing funds from the LEO II. Fund. The fund was successfully raised in September 2019 and has obtained capital commitments from a number of institutional investors. www.dubag.eu
STORA ENSO OYJ
Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 26 000 employees in over 30 countries. Our sales in 2018 were EUR 10.5 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com
CONTACT:
For further information, please contact:
Ulrika Lilja
EVP, Communications
tel. +46-72-221-9228
Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358-40-763-8767
STORA ENSO OYJ INVESTOR NEWS 8 January 2020 at 15.00 EET
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