Expera is now consolidated as a part of Ahlstrom-Munksjö. The acquired operations form Ahlstrom-Munksjö’s fifth business area and financial reporting segment is named North America Specialty Solutions. The business area will provide highly specialised materials that protect and enhance the performance of a wide range of industrial and consumer applications.
"This acquisition is a major step in the execution of our strategy. It will further strengthen our position in fibre-based materials and enable us to offer more value to our customers, particularly in North America, but also around the world. We have complementary capabilities and can create further value through joint product development and sharing of best practices. Finally, I would like to welcome Expera’s personnel to Ahlstrom-Munksjö," Hans Sohlström, president and CEO of Ahlstrom-Munksjö, said.
The earnings enhancing transaction will almost triple Ahlstrom-Munksjö’s net sales in the US and provide a platform for growth. The acquisition was announced on July 23, 2018. Customary regulatory approvals have been received for the transaction.
The acquired operations had net sales of $721 million and a comparable EBITDA of $71 million in 2017. Comparable EBITDA includes $3 million of items which will not have a continuous impact on EBITDA such as start-up cost of investment and management fees.
Near term annual synergy benefits of approximately $10 million are estimated to be achieved by year end 2019. One-time costs related to the achievement of synergies are estimated at $8 million. In addition, recently finalised investment offers additional earnings potential of approximately $11 million annually when fully commissioned, Ahlstrom-Munksjö said in a press release.
Ahlstrom-Munksjö plans to publish unaudited pro forma financial information at the latest in connection with the rights issue, which is expected to be launched during the fourth quarter of 2018.
Russ Wanke, the former president and CEO of Expera, has been appointed executive vice President, North America Specialty Solutions and a member of Ahlstrom-Munksjö’s executive management team. (RR)
Fibre2Fashion News Desk – India