Valmet, a leading global developer and supplier of technologies, automation, and services for the pulp, paper, and energy industries, has announced its agreement to acquire Korber Group’s Business Area Tissue. The deal, valued at approximately €380 million, will position Valmet as a comprehensive provider of converting and packaging technologies for the tissue industry, covering the entire value chain.
Korber’s Business Area Tissue specializes in innovative converting and packaging technologies and services for the tissue industry. Its offerings include converting lines for tissue rolls and folded tissue, along with product packaging solutions, services, and digital solutions. With net sales of €305 million in 2022 and a robust services business accounting for 36% of total net sales, Korber’s Business Area Tissue has established itself as a key player in the industry.
The acquisition aligns with Valmet’s strategic focus on capitalizing on the growing demand for bio-based products worldwide. The tissue industry is experiencing significant growth due to factors such as increased hygiene awareness and improved standards of living. By integrating the complementary competencies and offerings of Valmet and Korber’s Business Area Tissue, Valmet aims to create new business opportunities and provide enhanced customer service.
Pasi Laine, President and CEO of Valmet, expressed enthusiasm about the acquisition, stating, “The combination of Valmet’s current tissue making technologies, services, and automation offering and the acquired tissue converting offering and competences is a good strategic fit complementing each other and forms a strong basis to create new business opportunities and serve our customers even better.”
Upon completion of the acquisition, which is expected to be finalized by November 2, 2023, Valmet plans to integrate the acquired business as a separate unit within its paper business line. The process technology part of the business will be consolidated into the paper business line, while the services part will become part of Valmet’s services business line.
Valmet anticipates that the acquisition will generate sales, service, and cost synergies worth €8 million by the end of 2026. The financing for the acquisition will be facilitated through two facilities provided by Danske Bank A/S and Nordea Bank Abp, comprising a €250 million term loan facility and a €150 million term loan facility.
The acquisition of Korber’s Business Area Tissue marks another milestone for Valmet as it expands its market presence and strengthens its position as a leading provider of innovative solutions for the tissue industry. With a strong liquidity position and a solid net debt to EBITDA ratio, Valmet is well-positioned to capitalize on the growth opportunities in the tissue market.
Both Valmet and Korber Group are optimistic about the future prospects of the combined business. Stephan Seifert, CEO of Korber Group, stated, “Joining Valmet, this is an excellent opportunity to form a unique tissue player and set the course for the future.” Oswaldo Cruz, CEO of Korber’s Business Area Tissue, echoed the sentiment, adding, “We are very pleased that in Valmet we have found an ideal future partner for our employees, customers, and suppliers to leverage the full potential of our tissue business.”
As the acquisition progresses, industry stakeholders and customers eagerly anticipate the synergies and innovations that Valmet will bring to the tissue industry, further enhancing the company’s position as a key player in the global market.