Sappi`s Potlatch Transaction Finalised
Sappi Limited
Announcement
Johannesburg, 13 May 2002
Sappi`s Potlatch Transaction Finalised
Following on its announcement of 18 March 2002, Sappi is pleased to announce
that it has fulfilled all conditions precedent to its purchase from Potlatch
Corporation of Potlatch`s printing papers division as well as the Cloquet
pulp and paper mill in Duluth, Minnesota, USA. The transaction was
therefore completed on 13 May 2002.
Initial calculations indicated that this transaction would provide Sappi
with synergies and savings amounting to approximately US $120 million per
annum once the business is fully integrated. Sappi Chairman, Eugene van As,
confirmed on 7 May 2002, during Sappi`s 2nd quarter results announcement,
that this figure continues to be Sappi`s target. He said Sappi believed
that at least US 20 cents per share would be added to earnings in 2003.
The integration of the new business into Sappi`s North American structures
will now commence. Considerable planning work has been undertaken since the
announcement of the transaction, and Sappi expects the transition of the
manufacture of products produced at the Brainerd Mill, which Potlatch has
announced that it will close, to Sappi`s other facilities will proceed
smoothly. Trials have been conducted and the ability to manufacture the
products at Cloquet and Sappi`s other facilities has been confirmed.
The successful conclusion of this transaction ensures Sappi`s pre-eminent
position in the North American coated fine paper market. The Cloquet mill
will form an important part of Sappi`s North American business in the
future.
Last week Sappi announced the new management structure for Sappi Fine Paper
North America, including the Potlatch business, and also announced that Tom
Collins, former Production Manager from Sappi`s Somerset Mill, would
transfer to Cloquet and become Director of the Cloquet Mill.
ends
Issued by Brunswick on behalf of Sappi
Telephone +27 (0)11 442 8803
For further information:
Andr Oberholzer
Corporate Affairs & Communication Manager
Sappi Limited
Tel +27 (0) 11 407 8044
Fax +27 (0) 11 403 8236
Cell +27 (0) 82 906 0638
Andre.Oberholzer@za.sappi.com
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