Sequana to sell main Arjowiggins business segments
10 July 2018
Sequana will focus on its paper distribution business segment in the future. The company wants to part with Arjowiggins Graphic and Arjowiggins Creative Papers, exiting paper production almost completely.
Sequana will almost entirely exit paper production. The company announced it had entered into exclusive negotiations with Fineska for the sale of Arjowiggins Graphic and Arjowiggins Creative Papers. The Arjobex division within Arjowiggins is excluded from the sale. The transaction requires approval from the relevant competition authorities and is expected to be finalised by the end of October 2018.
Sequana says that the gross amount of the transaction should be €125m. But given the companies' debts and other liabilities, net proceeds from the sale should be in the region of €20m.
Arjowiggins Graphic and Arjowiggins Creative Papers together booked sales of €528m in 2017. According to Sequana, this accounts for 19% of Sequana's total sales. The businesses to be divested operate eight mills located in France, the UK, Spain and China and employ over 2,000 people. "[They] should report a profit in 2018," the parent company said.
With the sale, Sequana reinforces its intention to focus on its paper distribution business through its Antalis subsidiary as it is now exiting paper production almost completely. Only the Arjobex business will be retained. Arjobex is an Arjowiggins company and produces synthetic paper for example for food labels or outdoor posters.
Fineska is part of Dutch graphic board manufacturer Eska Group. Eska in turn belongs to investment group Andlinger & Company, which also owns Dutch specialty paper manufacturer Crown Van Gelder.