Sylvamo Announces Plans to Sell Europe Business
Key Highlights
- ➤Sylvamo (SLVM) plans to sell its Europe business to Midas Atlantic Partners.
- ➤Europe business includes paper mills in Saillat, France, and Nymolla, Sweden.
- ➤Sylvamo would receive 20% of future distributions under proposed transaction terms.
- ➤Closing is expected by the end of the first quarter of 2027.
- ➤Definitive agreement follows local works council and employee consultation processes.
Expert Statements
John Sims, Chief executive officer of Sylvamo
“We believe this potential transaction represents an important strategic step for our Europe business and Sylvamo. In Europe, it would create the opportunity to move forward with an owner experienced in corporate carve-outs and positioning businesses for long-term success. After the proposed transaction, Sylvamo would be a more focused company, with greater ability to invest in our business, strengthen our performance and pursue world-class excellence. We believe that focus will make us a stronger company and better position us to create sustainable value for our employees, customers and investors,”
Sylvamo (NYSE: SLVM) is entering into a put option agreement with Midas Atlantic Partners, in partnership with The Najafi Companies, for a binding offer to acquire the company’s Europe business, including its uncoated freesheet paper mills in Saillat, France, and Nymolla, Sweden, as well as its forestry and supporting business operations.
Sylvamo will conduct applicable consultation processes with works councils and employee representatives in accordance with local laws before making any final decision. Once consultation processes are complete, the parties expect to enter into a definitive share purchase agreement to transfer the business to Midas Atlantic Partners with an agreed level of working capital and cash in exchange for the right to receive 20% of future distributions. Closing is expected by the end of the first quarter of 2027.
Get started
Create a free account to read the full story.