Kemira to acquire the Akzo Nobel [Eka Chemicals] paper chemicals business

‘Kemira has reached a preliminary agreement to acquire AkzoNobel’s global paper chemicals business. The parties will also enter into a distribution agreement for AkzoNobel’s colloidal silica business for retention and drainage applications for the paper industry. The closing of the intended transaction is expected in the first quarter of 2015 and is subject to customary closing conditions, including completion of employee consultation proceedings and approvals of competition authorities in certain countries. The Enterprise Value of the transaction for AkzoNobel’s paper chemicals business is EUR 153 million.

AkzoNobel’s paper chemicals business includes products for retention and sizing, as well as other paper chemicals, including wet strength and coating products. In 2013, revenues of the purchased paper chemicals business were EUR 243 million (EMEA 40%, Americas 30% and APAC 30%). Over 50% of the revenues were related to the packaging board grades. Operative EBITDA of the purchased business in 2013 was EUR 23 million. Kemira expects more than EUR 15 million of annual synergies by the end of 2016 with the acquisition.’

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