Lohja Group, part of UPM-Kymmene's Converting Division, has signed an agreement to acquire Rexam Release, the siliconizing business of Rexam PLC. The business, generating last year a sales of approximately USD 180 million, includes three production facilities in the United States and one in The Netherlands. The acquired business employs 640 people.
The purchase price is USD 122,7 million (EUR 136,3 million) and the transaction will be finalized after the approval of regulatory authorities. The acquisition continues UPM Converting's business strategy by expanding Lohja Group's product range and improving its market position, especially in the United States.
Lohja Group consists of Lohjan Paperi Oy in Finland, Sterling-Lohja Ltd in the UK and DCP-Lohja Inc in the United States. The turnover of Lohja Group was approximately EUR 210 million in 1999, of which DCP Lohja Inc's share was EUR 90 million. Lohja Group employs 860 persons. Lohja Group´s principal product areas are siliconized release materials for hygiene, labelling and technical applications.
UPM Converting continues to focus on fast growing businesses based on proprietary know-how and product development. These include labelling and release materials as well as value added packaging materials. The division's core competencies also include envelope and packaging papers and various industrial wrappings where it holds a strong market position. The turnover of UPM Converting was EUR 1,734 million in 1999.
Rexam Release, the acquired siliconizing business, is part of the Rexam Coated Films & Papers Sector. The company has decided to divest its non-consumer sector and will concentrate exclusively on consumer packaging.
For further information, please contact:Mr. Pentti Kallio, President, UPM Converting, tel. +358 204 15 0015Mr. Ossi Saari, Deputy Managing Director, Lohjan Paperi, tel. +358 204 14 141
UPM-Kymmene CorporationCorporate Communications21 December, 2000