Stora Enso has signed an agreement to divest its Maxau paper production site in Germany and all related assets to Schwarz Produktion, as part of Schwarz Group, one of the top retailers in the world.
The enterprise value is approximately EUR 210 million (AUD$312 million), and closing is expected in the beginning of 2023 at the latest, subject to regulatory approvals.
The transaction forms part of the earlier announced plan to divest four of Stora Enso’s five paper production sites.
In line with its strategy, Stora Enso’s focus is on long-term growth potential for its renewable products in packaging, building solutions and bio-materials innovations.
“We are very pleased with this agreement, as it fulfils our goal of providing a sustainable long-term future for the Maxau site and its employees,” said Seppo Parvi, CFO and head of paper division at Stora Enso.
“We will continue with the divestment process for the remaining three paper assets, Nyomolla, Hylte and Anjala.”
Schwarz Produktion is expected to assume ownership for the Maxau site in the beginning of 2023, with its plan to continue paper production at the site, with the 440 employees belonging to the mill organisation at Maxau being part of the transaction.
Stora Enso will continue to operate the Maxau site and serve its supercalendered (SC) paper customers until the closing of the transaction.
The transaction will reduce Stora Enso’s annual SC paper by 530,000 tonnes, and based on 2021 figures, the divestment is expected to reduce the company’s annual sales by approximately EUR 250 million (AUD$370 million).
The divestment process continues for the remaining paper sites in Nymolla, Hylte and Anjala with no committed timeline for conclusion.
The process has no immediate effect on Stora Enso’s paper operations, which continue to serve their respective customers.
BofA Securities acted as Stora Enso’s financial advisor on this transaction.
