UPM packaging paper sale given go-ahead

The sale of UPM’s packaging paper operations to Billerud Finland Oy has received the required regulatory approval, green-lighting the €130 million deal.
 
Billerud Finland is a global supplier of packaging paper, and is a wholly owned subsidiary of Billerud AB. Its offering includes packaging and speciality paper, and packaging board.
 
The transaction involves Billerud taking over one paper machine at Pietarsaari and one at Tervasaari, both in Finland. In 2011, sales amounted to around €220 million. Manufactured products are various packaging papers (sack/kraft paper) with extensive areas of use in the food, retail, construction and other industries.
 
Per Lindberg, president and chief executive officer of Billerud, said: ‘The acquisition strengthens our offering in packaging paper and provides us with a strong platform for the further development of smarter packaging solutions. Also, the acquisition sharply reduces our pulp exposure as we will purchase an annual pulp volume corresponding to around 85 percent of Billerud's present pulp sales volume. We also reduce our currency exposure.’
 
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