Norske Skogindustrier ASA (Norske Skog) has successfully sold the paper mill Parenco and global recovered paper business Reparco to investment firm H2 Equity Partners (H2) for US$35.2 million.
Parenco is one of the largest paper mills in Western Europe and is the only newsprint producer in the Netherlands. Parenco’s production is currently based on 100% recycled fiber supplied by Norske Skog’s recovered paper business, Reparco. Reparco is active in the sourcing, collecting, sorting and trading of recovered paper worldwide. Reparco, which handles about 700kt of recycled paper per year, is also part of the transaction.
H2 is an independent private equity firm founded in 1991 with offices in Amsterdam, Cologne and London. H2 focuses on turnaround and growth investments in medium-sized companies in Benelux, Germany and the UK.
Norske Skog is one of the world’s largest newsprint producers with 14 mills and 44 sales offices and agents in five continents. Gaute Andreassen, head of Strategy Business Development at Norske Skog, commented: “We are happy to have found a new owner for Parenco and Reparco, not only for Norske Skog, but also for the employees, who now have a clear future ahead and can celebrate Parenco’s 100th anniversary. It was a challenging process due to the difficult circumstances in the publication paper market. The teamwork of everyone involved has led to a good result. I would like to thank Holland Corporate Finance for its persistence and the creative positioning of Parenco, which included conversion plans for the mill to packaging and hygiene grades. This enabled a competitive process where a large number of potential buyers from all over the world were contacted by Holland Corporate Finance.”
Oaklins' teams in the Netherlands and in Finland advised the seller in this transaction.
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