UPM-Kymmene to acquire Mactac

UPM-Kymmene Corporation will acquire Mactac, the pressure sensitive materials business, from the US based Bemis Company Inc for USD420 million.

UPM-Kymmene Corporation will acquire Mactac, the pressure sensitive materials business, from the US based Bemis Company Inc for USD420 million. At the same time, under separate agreement, UPM-Kymmene will sell its plastic films manufacturer, Walki Films, to Bemis Company Inc for USD70 million. The acquisition by UPM-Kymmene will strengthen the global business operations of its subsidiary, Raflatac. Both transactions are expected to close by year end and are subject to approvals by competition authorities.

Mactac's has five production facilities in the US, one in Belgium and a joint venture in Mexico, whilst Raflatac produces self-adhesive labelstock in nine countries worldwide.

The deal will increase Raflatac's share of the US self-adhesive labelstock market significantly and gain know how in new special materials. The expanded product range will strengthen the business both in Europe and the USA. The palette will be complemented by graphic products and technical two sided tapes.

Efficiencies of the mills will be improved through specialisation and optimisation of the production lines. Other key sources for synergies are logistics and purchasing. Raflatac's global organisation offers solid opportunities for increasing the sales of graphic and technical products. Mactac also possesses technology, which complements Rafsec's smart labels development.

UPM-Kymmene Converting Industry now consists of Raflatac producing self-adhesive labelstock, Loparex producing siliconised release materials and Walki Wisa producing wrappings and composite materials.

President and CEO of UPM-Kymmene Corporation, Juha Niemelä says that Walki Films is an excellent unit but the connection to the core businesses of the Group was too distant. 'That said, the Converting Industry will continue to be a significant part of UPM-Kymmene's growth strategy. With long term development work and many acquisitions and divestures we now have come to the intended structure in our Converting Industry. Mactac will get an owner committed to the business and its development. Furthermore, Walki Films will have a new owner, and a leader in its own field, also committed to developing that specific business,' said Mr Niemelä.

2002/08/22