Helsinki, 2011-08-01 22:15 CEST (GLOBE NEWSWIRE) -- UPM has completed the acquisition of Myllykoski Oyj and Rhein Papier GmbH ("Myllykoski"). The EU Commission approved the acquisition on 13 July 2011.
Myllykoski Oyj and Rhein Papier GmbH consist of seven publication paper mills in Germany, Finland and the United States. Their total annual paper production capacity is 2.8 million tonnes. The transaction also includes Myllykoski Oyj’s 0.8 % stake in the Finnish energy company Pohjolan Voima Oy.
The enterprise value of all the businesses acquired is approximately EUR 900 million. UPM will report a one-off gain of approximately EUR 40 million in the third quarter. UPM estimates that the transaction will have an immediate positive impact on cash flow and a positive impact on earnings per share from 2012. UPM has announced a preliminary estimate of annual cost synergies in excess of EUR 100 million.
For the financing of the acquisition, UPM will issue five million new UPM shares to the direct and indirect owners of Myllykoski Oyj and Rhein Papier GmbH and has drawn EUR 800 million in long term debt.
In its Interim Report to be issued on 3 August 2011, UPM will publish pro forma financial information on the transaction for the first half of the year.
Targeting fast integration
”UPM has been very determined in implementing its long term strategy of being the cost leader in the European paper industry and the global leader in magazine papers. Consolidation and restructuring are the best way to make fundamental improvements in terms of cost efficiency and to create value in the paper business. Our position as a frontrunner in the industry enables us to make a step change in the profitability of our Paper Business”, says UPM’s President and CEO Jussi Pesonen.
“UPM and Myllykoski have been working together since the beginning of the year in order to prepare an integration plan. The co-operation and the initial planning have been very professional and progressed in a good spirit. During this process, the merits of the transaction have been confirmed,” says Pesonen.
“The planning work to identify cost synergies is still ongoing. As the transaction is now completed, we have access to detailed information on Myllykoski operations and business units and we can verify the various options. The planning is proceeding towards announcement as soon as possible, however, latest by mid-September,” says Jyrki Ovaska, President of UPM’s Paper Business Group.
“UPM has strong confidence in the print industry and our target is to be a very competitive paper supplier. After the transaction, we will be better able to meet customers' needs with an extended product portfolio and strong local presence, including also in North America. Paper is one of UPM's core businesses and our target is to achieve undisputed cost leadership in Europe. We also want to grow in China and other emerging markets,” says Ovaska.
For more information, please contact:
Mr Jyrki Ovaska, President, Paper Business Group, UPM, tel. +358 2041 50564
Mr Tapio Korpeinen, CFO, UPM, tel. +358 2041 50004
Conference call and webcast on 3 August 2011:
UPM will hold a press conference hosted by Jussi Pesonen, President and CEO, in connection with the Interim Report for January–June 2011 in Finnish at UPM’s Group Head Office in Helsinki, Eteläesplanadi 2, on 3 August 2011 at 14:15 EET (12:15 GMT, 07:15 EST).
On the same day, 3 August, Jussi Pesonen will host a conference call and webcast for analysts and investors, in English, at 13:00 EET (11:00 GMT, 06:00 EST).
Conference call and webcast details:
The conference call can be participated either by dialling a number in the list below or following the webcast online at www.upm.com. Only participants who wish to ask questions in the conference call need to dial in. All participants can view the webcast presentation online.
We recommend that participants start dialling in 5-10 minutes prior to ensure a timely start to the conference.
Conference call title: UPM-Kymmene Corporation Interim Report January–June 2011
Conference ID: 891580
Participant - UK: +44 (0)20 7162 0025
Participant - North America Freephone: +1 877 491 0064
Participant - India Freephone: 000 8001 0035 51
Participant - India Freephone: 000 8001 0035 51
Participant - Australia LC: +61 (0)28 2239 543
Participant - Hong Kong LC: +852 300 278 26
Participant - Japan LC: +81 (3)45 8001 94
Participant - Malaysia LC: +60 (0)37 7124 471
Participant - New Zealand LC: +64 (0)99 1924 18
Participant - Singapore LC: +65 6823 2169
Participant - South Korea LC: +82 (0)23 4831 070
Participant - Taiwan LC: +886 (0)22 1626 701
Participant - Austria: +43 (0)268 2205 6292
Participant - Belgium: +32 (0)2 290 14 07
Participant - Czech Republic: +420 (2)3900 0635
Participant - Denmark: +45 3271 4607
Participant - Finland: +358 (0)9 2313 9201
Participant - France: +33 (0)1 7099 3208
Participant - Germany: +49 (0)695 8999 0507
Participant - Hungary: +36 (0)618 8932 15
Participant - Ireland: +353 (0)1 4364 106
Participant - Italy: +39 023 0350 9003
Participant - Luxembourg: +352 270 0073 408
Participant - Netherlands: +31 (0)20 7965 008
Participant - Norway: +47 2156 312 0
Participant - Spain: +34 9178 8989 6
Participant - Sweden: +46 (0)8 5052 0110
Participant - Switzerland (Geneva): +41 (0)2 2592 7007
Participant - Switzerland (Zurich): +41 (0)434 5692 61
The webcast can be replayed at www.upm.com for 12 months.
UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
UPM (including Myllykoski)
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 24,500 people and it has production plants in 16 countries. In 2010, UPM's and Myllykoski’s combined sales amounted to EUR 10.4 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com