The sale by Kemira Oyj of the business of the tinting system manufacturer Tikkurila CPS Oy has been confirmed, having received final approval from the competition authorities. Business operations were transferred to CPS Color Oy, the new company established by Industri Kapital, from 30 September 2000. The shares of the subsidiaries concerned in different countries were also transferred to CPS Color Group Oy, a new company to be the parent company of CPS Color Oy also. Industri Kapital is a private equity investment firm. Kemira remains as a minority shareholder in the new parent company, with an approximately 30% holding. The share of MB funds is approximately 10%. The deal is part of Kemira's long-term strategy to focus on chemicals for pulp, paper, and water treatment, and on paints and coatings.
Likewise, the sale by Tikkurila of its 50% shareholding in the Corob Group, a leading global tinting machine manufacturer, has been confirmed by the signing parties. The remaining shares will be transferred during the current week to Swisslog which already holds the other 50%. Swisslog is a listed Swiss company and specialises in supply chain solutions for a multitude of industries.
The Group's net sales figure for the part of business involved in this deal, including Swisslog's share, amounted to approximately EUR 130 million for 1999. The agreement was worth approximately EUR 200 million, or nearly twice the net sales for 1999 corresponding to Kemira's holding. The pretax profit of the deal is approximately EUR 90 million, when taking into account Kemira's remaining minority shareholding in the new company. The group's operating result for the current year will not be essentially affected by the divestment of the CPS business.