Ahlstrom and Munksjö have announced a plan combine their two companies, creating a global leader in sustainable and innovative fiber-based solutions. The two companies have already jointly operated a site in Turin, Italy since 2013 when Munksjö AB and Ahlstrom’s Label and Processing business merged. Both companies are focused on streamlining operations and improving operational efficiency.

“After the very successful integration of our acquired businesses during the past years and strong operating performance, the combination with Ahlstrom is a natural first step in the execution of our growth strategy, combining two leading businesses into one strong engine for performance and growth,” says Peter Seligson chairman of the board at Munksjö. “The combined company will be positioned for strong long term-financial returns partly through the significant communicated cost synergies but mainly through enhanced future competitiveness and growth opportunities.”

The new company will be a global leader in sustainable and innovative fiber-based solutions with preliminary combined annual net sales of approximately €2.2 billion and EBITDA of €249 million for the twelve months ended September 30, 2016 and approximately 6,200 employees. The combined company will have 41 production and converting facilities in 14 countries and will have leading global positions in its main product areas including:

• Decor: Surface cover for wood-based panels, used in the production of furniture, flooring and other interior and exterior architectural panels.
• Filtration: Products used for automotive applications (oil, fuel, and air filters), gas turbines, and indoor air quality filters. Advanced filter applications for, among others, laboratory use and life science applications.
• Industrial Solutions: Release liners and other products used for, among others, labelling, specialty tapes, abrasive backings, electrotechnical insulation and other industrial applications.
• Specialties: Specialty products used for, among others, building and wind applications, medical care, hygiene and food packaging.

The combination will be implemented as a statutory absorption merger whereby Ahlstrom will be merged into Munksjö. Ahlstrom’s shareholders will receive as merger consideration 0.9738 new shares in Munksjö for each share in Ahlstrom owned. Following the completion of the combination of approximately 52.8% for Munksjö shareholders and approximately 47.2% for Ahlstrom shareholders.

Hans Sohlström, chairman of the board of Ahlstrom, says,”During the past two years the Ahlstrom management has executed a very focused and successful business turn-around by shedding costs and by focusing on commercial excellence with new products and value adding solutions for our customers. The financial results speak for themselves. The combination now enables us to directly jump into a growth mode with a much stronger balance sheet and greater earnings potential which will benefit our shareholders and our customers as well as other stakeholders.”
 
In other news, Sakari Ahdekivi has been appointed interim president and CEO of Ahlstrom. He replaces Marco Levi due to the announced merger plan between Ahlstrom and Munksjö Oyj. Following the merger completion, Ahdekivi will continue as CFO of Ahlstrom and will be a member of the management team of the combined Ahlstrom-Munksjö.