OpenGate acquires Kotka Mills

Francinia Protti-Alvarez
22 April 2010

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Global private equity investor OpenGate Capital has acquired the Kotka Mill division of Finnish wood and paper products manufacturer Stora Enso, for total consideration of up to €24m in cash and earnouts.

The transaction also includes Stora Enso’s laminating paper operations in Malaysia and the business operations of the Tainionkoski paper machine 7, which will remain in Stora Enso’s ownership, but will be leased back to OpenGate. The deal is expected to close during the second quarter of 2010.

Kotka Mills sells high-quality specialty paper, paper-laminates and wood-based products to the laminate, plywood, construction and magazine industries around the world and is recognized for its strong manufacturing capabilities. The Mill produces well-known brands including saturating base kraft (SBK) paper under the brand Absorbex, impregnated SBK under the brand Imprex, machine finished coated magazine paper under the brand Solaris as well as sawn and planed wood.

Principally operated out of Kotka, Finland near Helsinki, Kotka Mill generates approximately €250m in annual revenue, employs about 570 people and produces positive earnings before income taxes (EBIT).