Stock Exchange release November 22, 2002 07:01:50 AM CET
METSO PLANS TO SELL ITS CONVERTING GROUP TO SWISS BOBST GROUP FOR APPROXIMATELY EUR 90 MILLION
Metso Corporation has signed a memorandum of understanding on selling its Converting group to Bobst Group SA of Prilly, Switzerland. Bobst Group is a supplier of products and services for the folding carton, corrugated board and flexible packaging industries. The transaction including the due diligence is intended to be completed during the first quarter of 2003. Also the relevant regulatory approval processes will be initiated. The value of the transaction is approximately EUR 90 million.
The planned divestment of the Converting group is a part of Metso's strategy to focus on the core businesses - pulp and paper industry; rock and mineral processing and process automation.
Metso's converting group comprises four business units of which the largest are located in England and in Italy. Net sales of the business group totaled EUR 176 million in 2001, and the amount of personnel was approximately 800.
The planned divestment does not have any significant effect on Metso's operating profit. However, it will reduce Metso's gearing by approximately 6 percentage points.
Bobst Group SA of Prilly, Switzerland, is a major supplier of products and services for the folding carton, corrugated board and flexible packaging industries. A wide range of products, manufactured in various countries, is marketed through a dedicated sales and service network with offices in more than 100 countries. Bobst Group is listed on the SWX Swiss Exchange.
Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The corporation's core businesses are fiber and paper technology (Metso Paper), rock and mineral processing (Metso Minerals) and automation and control technology (Metso Automation). In 2001, the net sales of Metso Corporation were EUR 4.3 billion and the personnel totaled approximately 30,000. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.