Last updateThu, 15 Mar 2018 11am


Sappi Limited: Acquisition of Cham Paper is credit positive for Sappi

On 28 February, Sappi Limited (Sappi, Ba2 positive) announced that it concluded the acquisition of Cham Paper Group (Cham) for a total consideration of CHF147 million (an equivalent of around US$150 million), implying roughly 6x EBITDA multiple. This is credit positive for Sappi, because it will strengthen Sappi’s position in profitable and growing specialty papers, thus diversifying the group further beyond structurally declining coated woodfree (CWF) paper. In addition, we expect the purchase price to be paid from internal sources, so the acquisition will lead to deleveraging on gross debt basis.

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