British paper mill moves to American ownership

SCA Forest Products and Mondi Group has sold its shareholdings in Aylesford Newsprint to The Martland Holdings for an undisclosed amount.

Located in Kent, Aylesford has a capacity to produce 400,000 tonnes of newsprint year from recycled fibre. According to a statement, the company supplies major national newspaper groups in the UK and generated £150 million of revenues in 2011.

Prior to completing the deal, the business was re-capitalised. The proceeds were used to repay in full its interest bearing debt and it now has an additional net cash position of £23 million. With pro forma gross assets, this figure rises to £99 million.

Ian Broxup, acting managing director of Aylesford Newsprint, says the transaction opens up new opportunities to reinforce the business' position as a UK newsprint producer.

Aylesford was initially formed in 1993 as a joint venture between SCA Forest Products and Mondi Group.

The Martland Holdings has a strategy of acquiring non-core divisions of large corporations and private companies with revenues ranging between €5 million (£4 million) and €1 billion worldwide.

The Martland Holdings will be 'long-term investors' says Landry Kouakou, executive director of the firm. He adds that Martland has a commitment to 'lifetime relationships' with the company's customers.

'Aylesford's high-quality asset base, its unique industrial know-how combined with a strong balance sheet with no financial debt and an improved operating structure will represent key assets for the future,' Kouakou comments.