UPM sells industrial wrapping producer Walki Wisa to CapMan

UPM has signed an agreement on the sale of the Walki Wisa Group, a business unit of UPM's Converting Division, to funds managed by the Finnish private equity investment company CapMan.

The parties have agreed not to disclose the sale price. UPM estimates the sale of the business will result in a capital gain of around EUR 25 million. The final figure will be determined based on the accounts to be prepared as at the closing of the deal. The transaction is expected to be concluded in the second quarter of 2007. The deal is subject to approval by competition authorities.

Walki Wisa is a European producer of wrappings and composite materials for industrial applications. Its products are used in, among other sectors, paper, metal and packaging industries. The production plants are located in Finland, Sweden, Germany, Great Britain and China. Walki Wisa's sales amounted to EUR 287 million in 2006. Walki Wisa employs about 950 people, some 600 of them in Finland.

The sale of Walki Wisa complies with UPM's strategy to divest non-core businesses. With this sale, UPM will focus on developing its converting operations on the rapidly growing self-adhesive labelstock and RFID business, in which UPM has invested strongly over recent years.

CapMan is one of the leading private equity investors in the Nordic countries. It manages Nordic funds worth approx. EUR 2.9 billion in total capital. The CapMan team comprises 100 people in Helsinki, Stockholm, Copenhagen and Oslo. The B shares of CapMan Plc are listed on the Main List of the Helsinki Stock Exchange.