HELSINKI, Finland, Dec. 17, 2002 (PRIMEZONE) -- Metsa Tissue Corporation has signed an agreement to purchase 38% of the shares of the Polish tissue products converter Krapex Sp.zoo for EUR 0.8 million. The price of the shares is based on the (100%) debt-free value of the whole of Krapex, which is roughly EUR 3 million. The acquisition is subject to the results of a process of due diligence and requires approval by Poland's competition authority and Ministry of the Interior. This official approval could be given during the first half of next year. If these conditions are met, Metsa Tissue's interest in Krapex would increase to 85% of the shares and votes.
Krapex is situated in Krapkowice in southern Poland, immediately next to the company ZPK, which was acquired in October 2002. The Krapex converting plant produces bathroom tissue, paper towels and industrial wipes for the away-from-home market. In 2001, Krapex had a turnover of around EUR 10 million and made a profit. The acquisition, if successful, would have a slight positive impact on Metsa Tissue's earnings per share for 2003.
Metsa Tissue is seeking market leadership in Poland, where its tissue business is expanding. The company's Polish business currently consists of a mill near Warsaw and the mill acquired at Krapkowice (ZPK) acquired in October 2002. Metsa Tissue currently has an annual production capacity in Poland of 45,000 tonnes of tissue products.
Metsa Tissue's top brand names on the Polish away-from-home market are Katrin and Saga. Krapex is Poland's leading supplier to this market, and the acquisition would make Metsa Tissue the country's biggest manufacturer of away-from-home products. The share of the Polish market held by Metsa Tissue's Away-from-Home and Consumer business areas would rise to more than 20%, making Metsa Tissue the country's biggest supplier of converted tissue products.
METSA TISSUE CORPORATION
Hannu Anttila President and CEO
For more information:
Hannu Anttila, President and CEO tel. +358 10 469 4959, gsm +358 50 2398, and, Timo Suuriniemi, Chief Financial Officer tel. +358 10 469 4580, gsm +358 50 560 8271 This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2002/12/17/20021217BIT00170/wkr0001.doc www.waymaker.net/bitonline/2002/12/17/20021217BIT00170/wkr0002.pdf