A sticky business

UPM-Kymmene is to acquire MACtac, a pressure sensitive materials business, from the US-based Bemis Company for $420 million.

At the same time, under a separate agreement, UPM-Kymmene will sell Walki Films, a manufacturer of vacuum and modified atmosphere plastic films, to the Bemis Company for $70 million.

Both transactions are expected to close by year-end and are subject to approvals by competition authorities.

The acquisition by UPM-Kymmene will strengthen the global business operations of UPM’s subsidiary, Raflatac, a supplier of paper-based and synthetic self-adhesive labelstock.

In 2001, the turnover of Raflatac was approximately $600 million, while that of MACtac was approximately $500 million.

The synergy benefits from the deal are estimated by the company to be $28 million by the end of 2004. The transaction is expected to be accretive on UPM-Kymmene’s earnings per share in the year 2003.