The sale of all Suominen’s shares in its subsidiary, Codi International BV, to Cogitandum BV, a subsidiary of Value Enhancement Partners, has been confirmed today. Codi International is a leading European wet wipes producer located in the Netherlands, with net sales of nearly EUR 50 million in 2012.
The estimated acquisition price is in total EUR 9.2 million. The final acquisition price will be contingent on the financial performance of Codi International in 2013 and on other conventional terms and conditions of the transaction. Due to the divestment, Suominen will recognize, in accordance with the IFRS 5 standard, a loss of approximately MEUR 16 in the second quarter result of 2013 of its discontinued operations. Previously, Codi International has been reported as part of Suominen’s Wiping segment. The transaction has been approved by the local works council. The closing of the transaction is still dependent on the fulfillment of the conditions precedent by both parties.
“Divesting Codi Wipes business unit is very well in line with our “In the Lead” strategy as the deal clarifies both our corporate structure and our position in wipes value chain, particularly in relation to our nonwovens customers. We can now concentrate even better on further strengthening our competitiveness in nonwovens”, Nina Kopola, President and CEO of Suominen Corporation says.
“Due to our major expansion in nonwovens, the strategic role of an own converting unit has clearly diminished from 2003, when Codi International was acquired. For Codi International, this transaction assures an owner with strategic interest to develop the company further”, Nina Kopola continues.
“Codi International holds a very strong position in the European wet wipes industry with a highly automated production that provides some of the highest quality converting possibilities in Europe. The fragmented market and growth in upcoming markets presents opportunities to increase the scale of the company and to diversify its production into more geographies and products, thereby also potentially being better able to serve its globally operating customers. We look forward to realizing the growth plans together with management”, Kenneth Tjon, Managing Partner of Value Enhancement Partners says.
After the closing of the deal, Suominen will operate two business units, Nonwovens and Flexibles, which will be reported in two separate reporting segments.
Due to the divestment, Suominen revises its outlook concerning the net sales development for 2013. Suominen expects that the full year 2013 net sales of its continuing operations will remain at the level of 2012. Previously, Suominen had stated that its net sales for the full year 2013 would remain at the level of 2012.