Sappi buys specialty paper assets for $149m
By Andries Mahlangu and Tammy Foyn - Dec 5th 2017, 11:18
Paper and pulp group Sappi said on Tuesday it would acquire speciality paper assets from Cham Paper Group, in a $149m deal that will be settled in cash.
Switzerland-based Cham produces coated speciality papers used in a variety of applications including industrial goods, consumer goods and digital imaging.
The company said the transaction, which is expected to close in the first quarter, represented an opportunity to grow its speciality and packaging paper business.
Sappi is a leading global producer of dissolving wood pulp, which is used in the textiles industry, among others.
The company made dissolving wood pulp a key focus area as demand for its traditional mainstay products, such as newsprint and glossy magazine print, was waning.
The new Cham assets include a digital imaging paper business, which uses paper supplied by the two mills included in the deal.
Sappi’s share price was off 0.89% at R95.02 in early trade on the JSE, valuing the company at R53bn. It was among several rand hedges to fall in early trade, as the currency returned to levels last seen before the medium-term budget.
© BusinessLIVE MMXVII
Pioneer Foods deal will be PepsiCo's biggest in Sub-Saharan Africa
22/07/2019 - 09:04
The US food and beverages company says the deal, worth about R24bn, will boost the SA economy.
SAB close to acquiring Smirnoff drinks range
19/07/2019 - 11:27
South African Breweries (SAB) is a step closer to acquiring the Smirnoff ready-to-drink (RTD) range of products, mostly ciders, and mixes, after the Competition Commission announced the approval of the acquisition from Diageo South Africa.
Unilever acquires OLLY Nutrition
24/04/2019 - 13:13
Unilever has continued its recent acquisition spree by agreeing to buy OLLY Nutrition, a US-based wellbeing business in the vitamins, minerals, and supplements (VMS) category.
Carrefour franchisee on prowl for acquisitions to grow in Africa
03/04/2019 - 08:42
Majid Al Futtaim Holding, an operator of French retailer Carrefour SA outlets, plans to boost its presence in Kenya as it looks to expand into eastern and southern Africa.
Watches of Switzerland sets its sights on more US acquisitions
25/03/2019 - 09:38
Watches of Switzerland expects to make further acquisitions in the US, which it first entered in 2017 with the purchase of jeweller Mayors, its CEO said.