Suominen Corporation has sold its wet wipes business unit, Codi Wipes, to Value Enhancement Partners investment company for an estimated acquisition price of €9.2 million.
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 by both companies. Codi International is a leading European wet wipes producer located in the Netherlands, with net sales of nearly €50 million in 2012.
“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," says Nina Kopola, president and CEO of Suominen Corporation.
"Due to our major expansion in nonwovens, the strategic role of our 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," continues Kopola.
“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," says Kenneth Tjon, managing partner, Value Enhancement Partners. "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."
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.
Suominen’s outlook regarding the operating profit remains unchanged.
In 2012, the net sales of Suominen’s continuing operations totaled MEUR 409.6. The operating profit of the continuing operations excluding non-recurring items was MEUR 12.9. The group operating profit excluding non-recurring items was MEUR 13.7 in 2012.