Körber Tissue 

Valmet has on November 2, 2023, completed the acquisition of Körber Group’s Business Area Tissue

What has Valmet acquired?

Körber’s Business Area Tissue (https://www.koerber-tissue.com/) specializes in innovative converting and packaging technologies and services for the tissue industry. Körber’s Business Area Tissue offers process technologies and related services for converting the jumbo reels of tissue paper into final tissue products for consumers and the Away from Home segment. It has the broadest offering in the tissue converting industry with converting lines for tissue rolls and for folded tissue including product packaging, as well as services and digital solutions.

Körber Tissue’s key locations are in Green Bay (Wisconsin) in the U.S., Johnville and São Paulo in Brazil, Lucca, Porcari and Bologna Italy and Nantong in China. In addition, there are non-producing subsidiaries in Shanghai in China and in Japan.

What is the rationale behind the acquisition of Körber Tissue for Valmet?

The acquisition of Körber’s BA Tissue strengthens and widens Valmet’s market position and offerings both in Process Technologies and Services segments. The combination of Valmet’s tissue making technologies, services and automation offering and the acquired tissue converting offering and competences is a good strategic fit for Valmet and forms a strong basis to create new business opportunities and serve our customers even better. 

After the acquisition Valmet has the widest product portfolio in the market, covering the whole tissue value chain from fiber to finished tissue product, as well as the broadest tissue customer coverage globally. 

Tissue market is growing and the growth in tissue demand is driven by several favorable trends such as increased hygiene awareness and standard of living particularly in the developing economies.

When was the acquisition completed, how will the acquired operations be included in Valmet's reporting and what are the key figures related to the acquisition?

The enterprise value (EV) of the acquisition is approximately EUR 380 million on a cash and debt free basis subject to ordinary post-closing adjustments. The acquisition was completed on November 2, 2023. The transaction consideration was paid in cash upon the completion. Valmet financed the acquisition with debt. 

The new Tissue Converting business will operate as a business unit integrated in Valmet’s Paper business line. It focuses on delivering and serving converting lines for rolled and folded tissue products, packaging equipment and on providing digital solutions and services. The acquired business enables Valmet to serve the tissue industry with wider expertise, process technologies and services covering end-to-end solutions including automation systems and flow control equipment.

In Valmet’s reporting, the process technology part of the business will be consolidated to Paper business line and the services part to the Services business line.  

The net sales of Körber Tissue were approximately EUR 305 million in 2022. The company has a strong and growing services business, which accounted for 36% of total net sales in 2022. Of total net sales, approximately 31% is from Europe, 26% from South America, 25% from North America, 11% from Asia and 6% rest of the world. Correspondingly, Valmet's net sales were EUR 5,074 million in 2022.

Körber Tissue’s adjusted EBITDA margin was approximately 12% in 2022.

Valmet estimates that the acquisition will bring sales, service and cost synergies worth of EUR 8 million by the end of 2026.

Körber Tissue employs around 1,170 employees in U.S., Brazil, Italy, China and Japan.

Key information about the acquired operations

Net sales in 2022 EUR ~305 million
Adj. EBITDA margin in 2022 ~12%
Number of employees ~1,170
Value of the acquisition1 EUR ~380 million

1)Enterprise value on a cash and debt free basis subject to ordinary post-closing adjustments.

Approximate split of net sales

Locations in the United States, Brazil, Italy, China and Japan

Read more:

November 3, 2023: Valmet has completed the acquisition of Körber's Business Area Tissue

July 7, 2023: Valmet strengthens its Process Technologies and Services segments by acquiring Körber’s Business Area Tissue