BARLOWORLD IN NEGOTIATION WITH BILLERUD TO SELL HE
Barloworld In Negotiation With Billerud To Sell Henry Cooke
Barloworld Limited
ISIN: ZAE000026639
Share code: BAW
("Barloworld")
BARLOWORLD IN NEGOTIATION WITH BILLERUD TO SELL HENRY COOKE
Swedish company Billerud AB (publ) is negotiating to acquire British paper
making company Henry Cooke Ltd from international industrial brand management
company Barloworld Limited, the two companies said today in a joint
announcement. The acquisition process has commenced and a Letter of Intent has
been signed. The process is expected to be completed before the end of this
calendar year and the expected purchase price is approximately GBP17.5 million
(R 211 million) on a debt free basis corresponding to book value.
Henry Cooke Ltd is a British wholly-owned subsidiary of Johannesburg listed
Barloworld. It produces packaging paper and is specialised in paper for medical
and flexible packaging; two of Billerud"s prioritised product segments. The
manufacturing plant of the company is situated approximately 100 kilometres
north of Manchester and includes two MG-machines with an annual capacity of
approximately 45 000 tons. The company has approximately 180 employees and an
annual turnover of approximately GBP30 million (R 360 million). Its sales are
global but with a main focus on Europe.
Bert Ostlund, President & CEO of Billerud said: "Henry Cooke is active within
prioritised product segments where we have ambitions to expand. An acquisition
would create new co-ordination possibilities within Billerud, increase pulp
integration and exceed our requirements for financial return."
Barloworld CEO Tony Phillips said: "We made a strategic decision to exit the
paper industry some years ago and this deal will complete that process."
Barloworld sold its other paper businesses in 1999.
Billerud manufactures and sells packaging paper, in the form of kraft paper and
containerboard, as well as market pulp. Production is carried out at the Group"s
integrated pulp and paper mills in GruvOn, Karlsborg and Skarblacka. The company
has a world-leading position within several well-defined product segments. The
main customer base is Europe but also includes the rest of the world. Billerud
has annual sales of approximately SEK 7 billion and 2,400 employees.
For further information on Billerud visit www.billerud.com or contact:
Bert Ostlund, President & CEO, +46 8 553 335 00 or +46 70 518 2757
Nils Lindholm; CFO, +46 8 553 335 07 or +46 70 217 5225
For further information on Barloworld visit www.barloworld.com or contact:
Mark Drewell, Head of Corporate Communication, Telephone: +27 (11) 445 1204,
Email: mdrewell@barloworld.com
9 September 2003
Date: 09/09/2003 09:30:03 AM Supplied by www.sharenet.co.za
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