South Africa-based paper maker Sappi has announced that the planned sale of three of its mills to the Aurelius Group has been cancelled, as the deadline agreed in the deal has expired.
Sappi had received binding offers from several parties for these mills, the Maastricht coated paper and board production site in the Netherlands, the Stockstadt integrated pulp and printing paper mill in Germany and the Kirkniemi integrated pulp and paper mill for the publishing industry in Finland. And had chosen in September the offer of Aurelius Group, a European multi-asset management group which acquired Agfa's offset division this year. The agreement was concluded on September 29, 2022, for an amount of approximately 270 million Euro.
Steve Binnie, CEO of Sappi, states: "Unfortunately, and despite Sappi's considerable efforts to close the transaction, the parties were unable to agree on the fulfillment of the conditions precedent. As a result, the transaction has lapsed."
The executive adds: "Sappi's strategic direction remains unchanged. It includes reducing exposure to the graphic paper segment while expanding Sappi's presence in segments such as packaging and specialty papers, pulp and biomaterials."
Sappi Europe will continue to manage the three plants "ensuring that they continue to bring value to the region and the customers they supply."
Aurelius has not currently communicated on the reasons for this situation.
