Suominen emerges as pure nonwovens player

The enterprise value of the Flexibles business area amounts to EUR 20 million, on top of which there is a customary earn-out component amounting to around EUR 1 million. Suominen Corporation retains a minority shareholding of 19.9 % in the business by converting parts of the currently outstanding intra-group loans into equity, while parts of the above intra-group loans remain as vendor loan. The cash component of the purchase price to be paid at closing to Suominen Corporation amounts to EUR 5.7 million.

Due to the divestment, Suominen will recognize, in accordance with the IFRS 5 standard, a non-recurring loss of approximately EUR 4.5 million in the second quarter result of 2014 in its discontinued operations.

“Divesting the Flexibles business area clarifies both our corporate structure and strategic focus. From now on, Suominen is totally devoted to nonwovens. We will be able to concentrate even better than earlier on executing our nonwovens strategy, along with further strengthening our capability to serve our nonwovens customers and grow together with them. Now, as the turnaround of Flexibles business is apparent, I am confident that a new, dedicated owner with clear focus and, a management team with international experience and abilities to further develop the business, will benefit Suominen Flexibles”, Nina Kopola, President & CEO of Suominen Corporation says.

"The existing management team and staff at Suominen Flexibles, led by Reima Kerttula, have accomplished a remarkable transformation of the business in 2014. Our objective is to build on this and grow the business in the Nordic countries and in central and eastern Europe. We are confident that the business, led by incoming CEO Borge Kvamme and Deputy CEO Reima Kerttula, with our focus and resources, will have a bright future", Alan Dargan, Founder of Lonsdale, commented. Ross Finegan, Founder of Lonsdale added that “The acquisition of Suominen’s Flexibles business area is another example of Lonsdale’s focus on supporting management teams in buying-out their businesses”.

After the closing of the deal, Suominen will operate two business areas, Convenience and Care, which will be reported in one reporting segment, Nonwovens. As of the same date, Suominen’s minority shareholding in the divested business will be reported under Available-for-sale financial assets. 

Suominen Corporation