BillerudKorsnäs has signed an agreement with AS Graanul Invest concerning the sale of its shares in SIA Latgran.
Latgran is a leading Latvian based pellets producer with annual volumes of 497 thousand tonnes and sales of Euro 73 million in 2014. BillerudKorsnäs’ ownership in Latgran is 75%, and the remaining 25% is owned by Baltic Resources Ab. The total consideration for 100% of the Company amounts to Euro 104 million on a cash and debt free basis, corresponding to a multiple of 7x Latgran’s EBITDA for 2014.
Per Lindberg, CEO of BillerudKorsnäs comments on the transaction: “Latgran has shown a strong sales and earnings development during our ownership and has been a great investment for BillerudKorsnäs. Meanwhile, BillerudKorsnäs has increasingly evolved towards a more focused company, working with renewable packaging material and solutions that has become our core business. The sale of Latgran is in line with our strategy and will enable us to continue to develop our core business. At the same time the transaction strengthens Latgran’s ability to further develop its pellets business together with Graanul.”
The transaction is expected to close during July 2015, provided that certain closing conditions are fulfilled.