MEMPHIS, Tenn. (News release) -- Sylvamo, the world's paper company, is announcing it agreed to acquire Stora Enso's uncoated freesheet paper mill in Nymolla, Sweden, for 150 million euros (approximately $150 million) expected to be funded in cash, subject to customary purchase price adjustments. The agreement includes the mill, the strong brands it produces and the people who make it happen.
The integrated mill has two pulp lines and the capacity to produce approximately 500,000 short tons of uncoated freesheet on two paper machines. In the last 12 months ending June 30, 2022, the facility generated 350 million euros in revenue. The mill produces several brands, including Multicopy, and paper used for office printing, business forms, digital printing, offset for printing books and much more.
The Nymolla mill has an excellent environmental footprint, which complements Sylvamo's purpose to produce paper in the most responsible and sustainable ways. The low-cost mill generates 85% of its energy needs from carbon-neutral, renewable biomass residuals.
"The Nymolla mill is aligned with our three-pronged strategy of commercial excellence, operational excellence and financial discipline and our commitment to maximizing value creation for Sylvamo shareowners," said Jean-Michel Ribiéras, chairman and chief executive officer. "We expect this acquisition to strengthen our uncoated freesheet product mix, enable us to serve customers across Europe and around the world more effectively and be immediately accretive to our earnings per share and free cash flow."
Stora Enso leaders and team members who operate and support the mill will bring their expertise to Sylvamo to help the world realize the promise of paper to educate, communicate and entertain.
The transaction is expected to close no later than the first quarter of 2023 and is subject to customary closing conditions, including receiving the required regulatory approvals.
A presentation on the acquisition is available at investors.sylvamo.com.