The EQT III fund (“EQT”), announced today that the fund has signed an agreement with Jefferson Smurfit Group to acquire Munksjö AB. Under EQT’s ownership, Munksjö will comprise of décor and specialty paper and the Aspa mill, following the recent divestment of the tissue division to SCA and the retention of the packaging division by Jefferson Smurfit.
Munksjö, head-quartered in Jönköping, Sweden, is the leading producer of décor and specialty paper in the world, with sales of approximately EUR 480 million (excluding the divested and separated divisions), 1 500 employees and nine mills in Sweden, Germany, Spain, Italy, USA and Norway.
Munksjö’s fastest growing product area is décor paper, which is used in laminates in the manufacture of flooring, kitchen furnishings, furniture, walls and other interior furnishings. Consumer preferences in the world are driving substitution to laminates, and Munksjö, with its global market share of approximately 25% in décor paper, is well positioned in this growing market.
“The “new” focused Munksjö fits well into EQT’s strategy to invest in high-quality companies with significant growth and development potential. EQT will ensure that the independent and focused Munksjö will be provided with sufficient resources and attention to continue to develop the business together with the management team, so as to capture its full potential” says Caspar Callerström, Partner at EQT Partners, investment advisor to the EQT funds.
Per Rodert, CEO of Munksjö, adds: “We are enthusiastic about working with EQT in building and developing Munksjö’s position as a leader in the décor and specialty paper markets. EQT’s financial resources and experience of driving industrial acceleration, coupled with Munksjö’s strong market position, will improve our potential to expand the business further, both organically and through acquisitions”.
The acquisition is subject to customary regulatory approvals.
EQT was advised by, and the transaction will be financed by Deutsche Bank.