Today, Thursday, the Finnish fibre materials group Ahlstrom-Munksjö announces that it has received a bid from a consortium.
The consortium Spa Holdings 3 Oy - consisting of the investment funds Bain Luxco de Bain Capital, Ahlstrom Capital, a subsidiary of Ahlström Capital Oy, Viknum, a subsidiary of Nidoco and the investment company Belgrano Inversiones - is offering to buy all shares not owned by Ahlstrom-Munksj or one of its subsidiaries for 18.10 euros in cash per share, approximately 24% above Wednesday's closing price (14.56 euros) at Nasdaq Helsinki.
The offer values the entire company at ?2.1 billion and has the support of shareholders representing more than 35% of Ahlstrom-Munksjo's shares and the Board of Directors. And the offer involves a multiple of approximately 10.0 times Ahlstrom-Munksjö's earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ended 30 June 2020, a multiple of "attractive relative to similar M&A transactions in the fiber-based engineering materials sector." indicates the group.
It is expected that, following the public offer, Bain Luxco will hold 55% of the shares of Spa Lux Topco, the holding company created for this opera house, Ahlstrom Capital approximately 36% and Viknum approximately 9%.
The consortium believes that the group will be best placed to realise its potential thanks to its diversified product portfolio, technical know-how and leading positions in niche markets.
However, the Consortium recognizes that the sector is becoming increasingly competitive. And it states that it will invest "a great deal of time, resources and capital." to support the long-term growth of Ahlstrom-Munksjo by strengthening its existing market positions in its key areas and developing new opportunities.
Ahlstrom-Munksjö's current portfolio of ?2.9 billion in sales includes filter materials, release coatings, food processing and packaging materials and pulp for industrial and consumer use.
The tender offer is expected to close in the second quarter of 2021.
