The sale is an element of the ongoing process of restructuring entities that are outside Borregaard's core areas.
Book paper has been produced at Borregaard Hellefos AS in Hokksund, a company that has a turnover of around NOK 190 million and 110 employees, while mechanical pulp has been produced at Borregaard Vafos AS in Kragerø, which has a turnover of around NOK 140 million and 55 employees. The sale also comprises the sales organisation that has served these enterprises.
The parties have agreed not to disclose the conditions of transfer. The sale is expected to generate a small accounting gain in both 2004 and 2005, since parts of the sale will take place in 2005. In 2003 Borregaard Hellefoss and Borregaard Vafos posted total operating profit (before goodwill amortisation) of approximately NOK 12 million.
The businesses will be part of a newly established group within timber and wood processing industry with Hellevad AS as Mother Company.