Sequana claims 'a lot of interest' in sale of Arjowiggins security business
Monday, October 13, 2008
Sequana has said it has received "a lot of interest" from potential industrials and private equity buyers in the planned disposal of subsidiary Arjowiggins' security business unit.
The company is in the process of disposing the nine business units, which will include its UK-based, 50-staffed Clacton-on-Sea mill in Essex and its Ivybridge mill in Devon.
The process should take a few months and an announcement is expected before the end of the year.
A spokesman for Sequana, the French parent of paper merchant Antalis and paper manufacturer Arjowiggins, said: "In the current market environment, Sequana would like to see its subsidiaries benefit from each others' strengths: for Arjowiggins to benefit from Antalis' distribution network, and Antalis to benefit from the full range of Arjowiggins' product lines."
Sequana said it has conducted a review of Arjowiggins' business lines to boost the company in its markets and to evaluate the potential for productivity gains within the group.
The spokesman added: "Through this process, Arjowiggins' business lines would be given greater autonomy to better respond to market demands.
"As the security business offers no cross synergies between the two entities, we have decided to sell it off. The proceeds of the disposal will be used to de-leverage Arjowiggins."
Other business units included in the deal Arjowiggins' mill Crevecoeur in France, the VHP Apledoorn mill in the Netherlands and the Salto mill in Brazil.