Image source: Ahlstrom-Munksjö

Consortium makes recommended bid for Ahlstrom-Munksjö

Finland, Helsinki: A consortium consisting of Ahlström Capital, Bain Capital, Viknum and Belgrano Inversiones has made an offer for the specialty paper company Ahlstrom-Munksjö of €18.1 per share.

This corresponds to a premium of about 24 % compared to the closing price from 23 September. The Board of Directors has unanimously recommended that shareholders accept the bid.

The bid is made through spa holdings, which is owned by the consortium.

The bid values the entire company at approximately $2.4 B (€2.1 B, SEK22 B). The bid is supported by shareholders representing just over 35 % of the shares in the company.

“We at Ahlström Capital are pleased with how Ahlstrom-Munksjö has developed during its 170-year history into a global leader in specialty fiber-based materials. However, the dynamics and pace of the industry are changing sharply. This means that active and ambitious measures are required to reach the company’s full potential. We believe that this type of measures are easier to implement in private ownership,” Lasse Heinonen, CEO of Ahlström Capital, said in a press release.

“A partnership with Bain Capital gives us valuable resources, increased expertise and a larger network for faster development. With these measures, together with the company’s management and employees, we can take Ahlstrom-Munksjö to the next level,” Heinonen continues.

If the bid goes through, Bain is expected to own about 55 % of the shares in the bid company, Ahsltrom Capital about 36 % and Viknum about 9 %.

“Ahlstrom-Munksjö has to deal with several operational and strategic challenges globally. Business dynamics and the situation are changing and the pace of technological development is increasing. Against this background and taking into account the necessary contributions from shareholders, I see the offer as both fair and as the best option for Ahlstrom-Munksjö’s shareholders,” said Jaakko Eskola, Chairman of ahlstrom-Munksjö, in a comment.

The Board of Directors of Ahsltrom-Munksjö recommends that shareholders accept the bid.

Source: Dagens industri