KEMIRA TO BECOME A LEADING GLOBAL SUPPLIER OF PULP AND PAPER CHEMICALS THROUGH ACQUISITION OF AMERICAN VININGS INDUSTRIES

18-Dec-2001

Kemira, a European leader in pulp and paper chemicals, is now becoming a globally leading specialty chemicals supplier to the pulp and paper industry through the acquisition of North American Vinings Industries. The price of the deal is USD 138 million (EUR 153 million). Vinings is among the biggest suppliers of specialty pulp and paper chemicals in North America. Vinings mainly operates in process performance chemicals such as deposit control agents, defoamers, pigment disperging agents and deinking chemicals. These products are used for increasing productivity in pulp and paper production and they enable higher use of recycled fibers in the process. The company?s net sales in 2000 totalled approx. USD 150 million and the company employs 340 people. Vinings operates seven production units located in North America?s most important paper producing regions: Marietta, West Oak and Midway (Georgia), Washougal (Washington), Fortville (Indiana) and in Canada Prince George (British Columbia) and St. Catharines (Ontario). The company head office is located in Marietta near Atlanta. In products, related applications, technologies and in expertise Vinings has a strong synergy with Kemira, when we think of our present products and our Complete solution concept. Kemira is today a preferred partner to European pulp and paper companies. Through this acquisition, we seek to reinforce Kemira?s other strategic goal, the position of a globally preferred partner. This acquisition makes a good example of creating sound synergy and adding to the strength of existing and acquired new businesses. According to Vinings this integration into Kemira should be excellent news for their customers and employees. Customers want to deal with fewer suppliers that can offer a greater product range on a global basis. In addition, they want to work with the basic producers who have the ability to better control the cost, quality and development of new chemistries. Kemira has defined its pulp and paper chemicals business as one of the company?s core growth business areas. Globally the company is a major operator in bleaching chemicals, specialty paper chemicals and water treatment chemicals. The company?s net sales in pulp and paper chemicals will now exceed EUR 500 million per year. J.P.Morgan Partners, the private equity and venture capital arm of J.P.Morgan Chase % Co., was the majority shareholder in Vinings, and management owned a significant stake, as well. J.P.Morgan Partners is a globally-integrated firm that invests in a wide variety of sectors. It has a successful, long-term track record in the chemicals sector, in which it has invested over USD 800 million over the past 17 years. Vinings was advised by JPMorgan Securities, Inc. Closing of the deal is subject to approval by competition authorities.

https://www.chemeurope.com/en/news/6724/kemira-to-become-a-leading-global-supplier-of-pulp-and-paper-chemicals-through-acquisition-of-american-vinings-industries.html