Kemira Oyj has acquired AkzoNobel's paper chemicals business for EUR 153 million to enhance its market position and operational efficiency in the growing APAC region.

Target Information

Kemira Oyj has successfully completed the acquisition of AkzoNobel's paper chemicals business, a transaction that was originally announced on July 8, 2014. The deal, valued at EUR 153 million, is expected to be cash-effective by the second quarter of 2015. With this acquisition, Kemira anticipates an increase in revenues exceeding EUR 200 million on an annual basis starting from the completion date.

The acquisition includes the transfer of six manufacturing sites and approximately 350 employees from AkzoNobel. Kemira plans to enhance the production capacity of its existing paper chemical manufacturing sites to achieve the anticipated production synergies. The integration process is projected to take about two years, yielding annual net synergies of EUR 15 million. The sites being transferred are located across various countries including South Korea, Thailand, Indonesia, Australia, Spain, and Italy.

Industry Overview in the Target's Country

The paper chemicals industry has shown a steady growth trajectory, particularly in the Asia-Pacific (APAC) region, where demand for sustainable and high-quality paper products is on the rise. This surge is driven by an increase in consum