Metsä Tissue has agreed to divest its napkin business to Mutares Group
ESPOO, Finland (News release) -- Metsä Tissue, part of Metsä Group, has agreed to divest its napkin business to keeeper Group, which is part of Mutares Group. The transaction includes the real estate, machinery and equipment and warehouses at the Stotzheim mill in Germany as well as the Fasana and Mondial brands. As a result of the transaction, the mill's personnel is planned to be transferred to the new owner as existing employees.
"The napkin business has not reached profitability targets lately and napkins are not part of our core offering anymore. Thus we have explored all the alternatives for the business to find the best solution for the Stotzheim mill and its personnel," says Esa Kaikkonen, CEO of Metsä Tissue. "When completed, the divestment will support Metsä Tissue's strategy and enables us to focus on our core business, producing high-quality tissue and greaseproof papers close to our customers."
Due to the transaction an approximately EUR 20 million negative operating result impact will be recorded as item affecting comparability mainly in the fourth quarter of 2019. Closing of the transaction is subject to the approval from the German competition authorities. The transaction is planned to be completed in the first quarter of 2020.
The keeeper Group is one of the largest European suppliers of innovative and high-quality plastic household products. The Group serves customers in the DIY, food retailing, wholesale and furniture retail sectors in around 35 countries worldwide. Mutares SE & Co. KGaA is a German stock exchange listed holding company that focuses on acquiring medium-sized companies with the goal of increasing their value with a focus on sustainable growth. Annual sales of Mutares Group was approximately EUR 865 million in 2018.