Stora Enso has signed an agreement to divest its sawn construction timber (KVH) mill at Pfarrkirchen in Germany, to the fund LEO II. – VV1 GmbH, managed by the private equity firm Dubag Group.
The divestment is part of Stora Enso’s profit protection programme and it is in line with the Group’s strategic transformation to focus on developing integrated mills for wood products production.
Pfarrkirchen Mill has a good reputation on the market, is well equipped and holds a team of very competent personnel, but it is a non-integrated further processing mill. The new owner is in a better position to give the mill the attention it deserves and ensure a long-term development. The transaction is expected to be completed in the 1Q 2020. The impact on Stora Enso’s operational EBIT and net debt will not be material.
The divestment is expected to reduce Stora Enso’s annual sales by Euro 40 million. It will also reduce Stora Enso’s KVH production capacity by approximately 145 000 m3.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.