Ahlstrom has agreed on the sale of its shares of Ahlstrom Fabricação de Não-Tecidos which operates the Brazilian plant of Ahlstrom’s former Home and Personal business area to Suominen.

Ahlstrom sold its wipes business to Suominen in 2011, but the transfer of the Paulínia plant in Brazil was prolonged due to delays in certain required official permissions and subsequent renegotiations. The enterprise value of the transaction is agreed at €17.5 million.

Suominen will finance the acquisition through a convertible hybrid bond issue with a nominal value of €17.5 million.

The plant in Paulínia is approximately 120 kilometres northwest of São Paulo. It was built in 2008 and employs approximately 40 people. All employees will be transferred to Suominen at the closing of the transaction, which is expected to take place in February 2014.

“We are very pleased that the transfer of Ahlstrom Paulínia and consequently the divestment of our wipes business to Suominen will now be completed,” said Ahlstrom president and CEO Jan Lång. “Our focus is now on high performance fibre-based products that aim for a clean and healthy environment.”

“Finalizing the acquisition of the Paulínia plant marks an important milestone for us,” added Suominen’s Nina Kopola. “The deal provides us with a foothold in the South American markets where we see very exciting growth opportunities.”