Eminence Business Media

Eminence Business Media

Monday, September 10, 2012

Ahlstrom to divest Label & Processing businesses

Ahlstrom Corp. signed an agreement to combine its Label and Processing business area with Munksjö AB to form a global leader in specialty papers through two partial divestitures: one consisting of the Label and Processing operations in Europe (LP Europe) and one in Brazil (Coated Specialties).

The new company will be called Munksjö Corp. (in Finnish Munksjö Oyj) and its shares will be listed on NASDAQ OMX Helsinki. The transaction enables Ahlstrom to focus exclusively on its value-added business areas: Building and Energy, Filtration and Food and Medical. Meanwhile, the Label and Processing business area can be further developed together with Munksjö.

"During the past three years, Ahlstrom has systematically executed its strategy towards becoming a focused high performance materials company. This transaction of combining the Label and Processing business area with Munksjö is the most significant step in our strategy execution. It allows us to concentrate our resources to the areas where we see the most attractive value-add and growth opportunities," says Jan Lång, President and CEO of Ahlstrom.

"The essence of our strategy is that our high performance materials protect people, purify air and liquids and provide surface and structure to our customers' products. In addition to reinforcing our global leadership in Filtration, we seek growth opportunities in high performance materials for building, food packaging and medical applications," Lång continues.

"We expect this transaction to enhance value for Ahlstrom's shareholders through ownership in two focused publicly listed companies that are global leaders in their respective fields," concludes Lång.