Suominen divests its Flexibles business area and emerges as Nonwovens company, comparison figures of the outlook statement for 2014 restated due to the divestment
Helsinki, Finland, 2014-07-11 17:15 CEST (GLOBE NEWSWIRE) --
Suominen Corporation Stock exchange release July 11, 2014 at 18:15 (EEST)
SUOMINEN DIVESTS ITS FLEXIBLES BUSINESS AREA AND EMERGES AS NONWOVENS COMPANY, COMPARISON FIGURES OF THE OUTLOOK STATEMENT FOR 2014 RESTATED DUE TO THE DIVESTMENT
Suominen Corporation has today reached an agreement to divest its flexible packaging business, comprising of Suominen Joustopakkaukset Oy and its subsidiaries as well as Suominen Polska Sp. z.o.o, to a UK-based private equity firm Lonsdale Capital Partners LLP and the MBI team, consisting of the management of the business. Closing of the transaction is expected to take place in the coming days. The deal will transform Suominen into a company purely focused on nonwovens, in line with its strategic focus.
The enterprise value of the Flexibles business area amounts to EUR 20 million, on top of which there is a customary earn-out component amounting to around EUR 1 million. Suominen Corporation retains a minority shareholding of 19.9 % in the business by converting parts of the currently outstanding intra-group loans into equity, while parts of the above intra-group loans remain as vendor loan. The cash component of the purchase price to be paid at closing to Suominen Corporation amounts to EUR 5.7 million.
Due to the divestment, Suominen will recognize, in accordance with the IFRS 5 standard, a non-recurring loss of approximately EUR 4.5 million in the second quarter result of 2014 in its discontinued operations.
“Divesting the Flexibles business area clarifies both our corporate structure and strategic focus. From now on, Suominen is totally devoted to nonwovens. We will be able to concentrate even better than earlier on executing our nonwovens strategy, along with further strengthening our capability to serve our nonwovens customers and grow together with them. Now, as the turnaround of Flexibles business is apparent, I am confident that a new, dedicated owner with clear focus and, a management team with international experience and abilities to further develop the business, will benefit Suominen Flexibles”, Nina Kopola, President & CEO of Suominen Corporation says.
"The existing management team and staff at Suominen Flexibles, led by Reima Kerttula, have accomplished a remarkable transformation of the business in 2014. Our objective is to build on this and grow the business in the Nordic countries and in central and eastern Europe. We are confident that the business, led by incoming CEO Borge Kvamme and Deputy CEO Reima Kerttula, with our focus and resources, will have a bright future", Alan Dargan, Founder of Lonsdale, commented. Ross Finegan, Founder of Lonsdale added that “The acquisition of Suominen’s Flexibles business area is another example of Lonsdale’s focus on supporting management teams in buying-out their businesses”.
After the closing of the deal, Suominen will operate two business areas, Convenience and Care, which will be reported in one reporting segment, Nonwovens. As of the same date, Suominen’s minority shareholding in the divested business will be reported under Available-for-sale financial assets.
Suominen restates the comparison figures in its outlook statement for 2014
Due to the divestment, Suominen restates the comparison figures in its outlook statement to reflect the continuing business of the Group.
Suominen expects that for the full year 2014, its net sales and operating profit excluding non-recurring items from continuing operations will improve from year 2013. Suominen’s net sales of the continuing operations in 2013 amounted to MEUR 373.7 and operating profit excluding non-recurring items was MEUR 19.0. Both figures refer to continuing operations and include Nonwovens segment and unallocated items. Earlier, the comparison figures used in the outlook statement were, respectively, MEUR 433.1 and MEUR 18.3, as reported in the Financial Statements of 2013.
The Flexibles business area, that has formed the Flexibles reporting segment, produces printed plastic film packaging for consumer applications for industry and the retail sector, as well as system and security packaging. The business area operates two plants in Finland and one in Poland as well as sales offices in Sweden and Russia. Suominen Flexibles had on average 487 employees in 2013. In 2013, the net sales of the segment were EUR 59.4 million (accounting for 15% of the Suominen Group’s net sales). Operating loss of the segment was EUR -2.2 million.
Nina Kopola, President & CEO
For additional information, please contact
Nina Kopola, President & CEO, tel. +358 (0)10 214 300
Suominen in brief
Suominen supplies its industrial and retail customers with nonwovens and flexible packaging for use in consumer products worldwide. Suominen is the global market leader in nonwovens for wipes. The company employs more than 1,000 people in Europe and in the Americas. Suominen’s reported net sales in 2013 amounted to MEUR 433.1 and operating profit excluding non-recurring items was MEUR 18.3 (continuing operations). The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange. Read more at www.suominen.fi.
Lonsdale Capital Partners in brief
Lonsdale was formed by Alan Dargan, Ross Finegan and David Gasparro in 2008 in order to acquire and grow profitable businesses led by strong management teams. Suominen’s Flexibles business area will be Lonsdale's sixth acquisition. Lonsdale invests its own capital, along with that of a supporting group of family offices, and high net worth individuals. See www.lonsdalepartners.com.
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