Sappi announced that its plan to sell three paper mills to Aurelius Group, a pan-European multi-asset management group, has failed. The planned sale of the Kirkniemi, Stockstadt, and Maastricht plants did not materialize within the timeframe of the contractual agreement. The parties could not agree to meet the conditions precedent, and so the agreement fell through.
Aurelius confirmed the failure of the transaction, which could not be concluded due to changes in external framework conditions.
Sappi and Aurelius had entered into an agreement to sell the three graphic paper mills in Finland, Germany, and the Netherlands in September last year. The transaction had received the green light from the EU competition authority last December, and the deal was initially scheduled to close in the first quarter of 2023, before being postponed to the second quarter of 2023 and finally cancelled.
“Unfortunately, despite Sappi’s efforts to close the transaction, the parties were unable to reach an agreement to meet the conditions precedent. Therefore, the transaction has lapsed,” comments Steve Binnie, CEO of Sappi. “Sappi’s strategic objective remains unchanged: reducing exposure to the graphic paper segment and expanding Sappi’s presence in segments such as packaging and specialty papers, pulp, and biomaterials.”
“Sappi will continue to operate the three mills as part of the overall portfolio and ensure that they continue to deliver value to the region and the customers they serve,” says Marco Eikelenboom, CEO of Sappi Europe.