Powerflute receives second acquisition installment payment of €7.5M from Paper Excellence for its Papierfabrik Scheufelen group of companies, as part of €38.5M purchase price
November 8, 2011
– Powerflute Oyj ("Powerflute" or the "Group"), the packaging and paper group, today confirmed that the second instalment of the cash consideration for the disposal of the Papierfabrik Scheufelen group of companies (together "Scheufelen") of €7.5m was received by the Group as expected on Friday, 4 November 2011.
Scheufelen, which represented the whole of the Graphic Papers business segment, was sold to Paper Excellence BV, a privately owned pulp and paper producer, for total consideration of €38.5m, comprising cash consideration of €32.5m (of which €25.0m was paid at completion on 4 May 2011) and the assumption of €6.0m of debt by Paper Excellence.
Dermot Smurfit, Chairman of Powerflute said:
"We are pleased to have received the second instalment of the cash consideration for the disposal of Scheufelen. We believe the disposal of Scheufelen to Paper Excellence was a successful outcome for our shareholders. Powerflute achieved a significant return on its investment in a little over two years and is in a strong position to continue to pursue its strategy of seeking opportunities to acquire underperforming businesses in the paper and packaging sectors."