STOCKHOLM - Speciality materials manufacturer Ahlstrom has received a binding offer for its Abrasives business unit from Munksjö, the international manufacturer of decor paper solutions.

The potential divestment would result in Munksjö acquiring Ahlstrom’s share of the Arches plant in France - currently jointly operated by both companies - together with the Abrasives business unit, including all associated operations and personnel.

Helen Mets, president and CEO at Ahlstrom, said the deal would mark another key milestone in its growth transformation, reinforcing its strategic commitment to sustainable speciality materials.

“We are considering a binding offer for our Abrasives business that would allow us to focus on Ahlstrom’s specialty materials portfolio, marking another strategic step on our transformation journey,” she said

“Finding a new owner that values Abrasives’ long-term development and success is highly important to us, and we believe that Munksjö would provide a great new home for this business and its people.”

The Abrasives business unit offers a comprehensive portfolio of paper backing products, including latex-impregnated paper, heavy-weight paper for abrasive backings and high-performance papers for other applications.

The potential divestment to Munksjö would allow Ahlstrom to focus more intensely on its sustainable specialty materials portfolio, while providing Munksjö with additional capabilities to develop its decorative paper business.

As Munksjö already shares the Arches plant with Ahlstrom and was previously part of the same company, it has a strong operational and cultural fit with Abrasives.

Definitive agreements for the acquisition would be entered into after information and consultation with employee representative bodies. The closing of the transaction would then be subject to regulatory approvals and other customary closing conditions and would be expected to close in the coming months.

Ahlstrom says it is committed to maintaining business continuity during a potential divestment process and would make every effort to ensure a smooth transition for the Arches plant, as well as its customers, employees, and other stakeholders.