Smurfit offload paper business in €450m deal

PAPER and packaging group, Jefferson Smurfit has agreed to a €450 million deal to offload its Munksjo specialist paper business in Sweden.

The company said yesterday it had agreed terms with the EQT III Fund, a Scandinavian private equity group, but that the deal remained subject to the usual regulatory approvals. The proceeds from the disposal will be used to pay back part of Smurfit’s hefty debt pile.

The winning bid beat off competition from two rival private equity groups, Electra Partners Europe and a consortium involving CVC and Nordic Capital. Munksjo’s business comprises pulp, décor paper and specialist paper and is expected to generate sales of approximately €480 million this year. Smurfit will retain small parts of the business located in Norway, Sweden and Poland, which concentrate on containerboard and corrugated paper.