eng

Acquisition of Rockhammars Bruk

3/11/2009 8:00 AM

ACQUISITION OF ROCKHAMMARS BRUK
 
Investment AB Kinnevik today announced that Korsnäs AB has acquired Rockhammars Bruk from Rottneros AB for a total consideration of SEK 145 million.
 
Rockhammars Bruk in Lindesberg produces chemical pulp, CTMP, and has a production capacity of 60,000 tonnes annually. The mill has applied for environ­mental permission to increase the yearly production to 90,000 tons. Following the acquisition of Rockhammars Bruk, Korsnäs will be largely self-sufficient in pulp for its entire production of paper and cartonboard, which is expected to reduce production costs.
 
The transaction is subject to approval by relevant competition authorities and is expected to be finalised before the end of March.
 
"I am very pleased to welcome Rockhammars Bruk into the Korsnäs family. The acquisition makes us largely self-sufficient in pulp including CTMP, which Rockhammar produces. The opportunity to add investments such as this one to the profit enhance­ment programme which is under implementation in Korsnäs reduces our production costs, makes us independent of the development on the pulp market and  will contri­bute to a stable and competitive future for Korsnäs. This is an important step towards our long-term goal of an operating margin above 10%," says Christer Simrén, CEO of Korsnäs.

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Investment AB Kinnevik's objective is to increase shareholder value, primarily through net asset value growth. The Parent Company manages a portfolio of investments focused around three comprehensive business areas; Major Listed Holdings which includes Millicom International Cellular, Tele2, Modern Times Group MTG, Metro International and Transcom WorldWide, Major Unlisted Holdings which includes the cartonboard and paper company Korsnäs, and New Ventures which is active in finding new investments in small and mid sized companies which has a significant growth potential. Kinnevik plays an active role on the Boards of its holdings.
Investment AB Kinnevik's class A and class B shares are listed on the Nasdaq OMX Stockholm's Nordic list for large-cap companies within the financial and real estate sector. The ticker codes are KINV A and KINV B.