Kemira Oyj has acquired Finnish Chemicals Oy from Erikem Luxembourg S.A., enhancing its position as the second largest global supplier of paper and pulp chemicals.

Target Company Overview

Kemira Oyj has acquired the entire shareholding of Finnish Chemicals Oy from Erikem Luxembourg S.A., a company owned by international private equity investors including PPM Ventures, Montagu Private Equity, and MB Funds. Finnish Chemicals generates approximately €250 million in annual revenue, and the transaction has a debt-free and cash-free valuation of €345 million. This acquisition is expected to have a positive impact on Kemira's earnings per share starting from the first full year post-acquisition. With this deal, Kemira solidifies its position as the second largest global supplier of paper and pulp chemicals.

Finnish Chemicals specializes in key chemical products including sodium chlorate, sodium hydroxide, chlorine dioxide, and sodium borohydride. The acquisition allows Kemira to become the sole global supplier of a complete product portfolio for pulp bleaching, enhancing its role as a strategic partner for major paper and pulp manufacturers. The technological capabilities and expertise of both companies align well, enabling them to capture a larger share of industry growth in the future.

Industry Overview in Finland

The chemical industry in Finland is renowned for its innovation and sustainability, contributing significantly to the Finnish economy. This sector is characterized by a diverse range of sub-industries, including basic chemicals, spe