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UPDATE 1-Kemira buys rival AkzoNobel's paper chemical unit for $153 mln
July 8, 2014 / 6:52 AM / 3 years ago

UPDATE 1-Kemira buys rival AkzoNobel's paper chemical unit for $153 mln

(Adds details, analyst)

HELSINKI, July 8 (Reuters) - Finnish chemicals company Kemira said on Tuesday it would buy rival Akzo Nobel’s paper chemical business for 153 million euros ($209 million), a move analysts welcomed as a good deal.

Kemira said it expected more than 15 million euros in annual synergies from the purchase of the unit.

“153 million euros is a good price from Kemira’s point of view, it gives good preconditions to create more shareholder value,” research firm Inderes analyst Antti Viljakainen said.

Last year, Akzo’s paper chemical business had revenues of 243 million euros and operating profit before interest, taxes, depreciation and amortisation (EBITDA) reached 23 million, Kemira said. The bulk of its sales came from packaging board grade chemicals.

The deal is expected to close in the first quarter of next year, Kemira said. ($1 = 0.7331 Euros) (Reporting by Sakari Suoninen; Editing by Sophie Walker)

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