Sequana will almost completely stop manufacturing paper. The company announced that it has launched exclusive negotiations with Fineskafor the sale of Arjowiggins Graphic and Arjowiggins Creative Papers. The Arjobexdivision within Arjowiggins is excluded from the sale. The transaction requires the approval of the competition authorities and should be completed by the end of October 2018.
The gross amount of the transaction should be 125 million euros. However, given the company’s debts and other liabilities, the net proceeds from the sale should be around 20 million (to be adjusted on completion of the operation, in line with balance sheet items).
Arjowiggins Graphic and Arjowiggins Creative Papers recorded a turnover of 528 million euros in 2017. According to Sequana, that represents 19% of its own total sales. The companies to be given up operate in eight factories located in France, the United Kingdom, Spain and China, and employ more than 2 thousand people. In the wake of significant restructuring operations carried out in 2014 and 2015 to concentrate on special documents, these two divisions generated a positive cash flow in 2017, and should show a profit in 2018.
After a tendering process which was part of Sequana’s strategy to assess the various options and carry out its own role in the required consolidation of the paper industry, Sequana’s Board of Directors chose Fineska’s offer. This operation, with which Sequana was satisfied, would also safeguard the future development of Arjowiggins Graphic and Arjowiggins Creative Papers within a private investment group which has supported CVG and Eska, two renowned actors in the special papers and graphic cardboard sectors, for a number of years.
This transaction is an important landmark for Sequana which, in this way, will stop production of paper, with the exception of Arjobex, an Arjowiggins company, which manufactures synthetic paper for labels, foods or outside posters.
Since 2008, Sequana has concentrated on its paper distribution business, in which its subsidiary Antalis boasts a prominent position in Europe for the supply of paper, cardboard and plastic and material for packaging.