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Press release - 26 February 2007

CapMan acquires Walki Wisa from UPM

The funds managed by CapMan and UPM-Kymmene Corporation have signed an agreement for the transfer of Walki Wisa Group into the ownership of CapMan funds. Walki Wisa is Europe's leading producer of wrappings and composite materials for industrial applications.

Walki Wisa is a producer of wrappings and composite materials for industrial applications. Its products are used, among others, in paper, metal and packaging industries. The company has production units in Finland, Sweden, Germany, United Kingdom and in China. Walki Wisa’s net sales totalled EUR 287 million in 2006 and it employs some 950 persons, some 600 of them in Finland.

 

”Walki Wisa is a traditional Finnish company with very strong position in selected geographical markets. The company has high-grade and efficient production capacity and it has through innovative R&D been able to successfully launch new products. We will develop Walki Wisa as an independent company through organic growth and acquisitions and investigate opportunities to continue expansion investments in China, among others,” says CapMan Partner Anders Björkell.

 

”The sale of Walki Wisa complies with UPM's strategy to divest non-core businesses. With this sale, UPM will focus on developing its converting operations on the rapidly growing self-adhesive labelstock and RFID business, in which UPM has invested strongly over recent years”, states Matti Lindahl, President of  Special Coatings Business at UPM.

 

”CapMan’s experience in company growth and internationalisation and our solid production are good starting points for Walki Wisa to operate independently also in the future. We are very pleased with the resources and contact network facilitated by the new owner,” says Ari Rinkinen, President of Walki Wisa Group.

 

Esko Mäkeläinen will be nominated as Chairman of the Board. Mr Mäkeläinen has more than 30 years’ experience in the forest industry sector, among others as the CFO of Stora Enso.

 

The transaction will be made for a new company and it is subject to approval by competition authorities. CapMan funds will have a 100% holding in the new company. The management of Walki Wisa will be offered shares in the new company. It is expected that the transaction will be closed in the second quarter of 2007. The investment in the company was made by CapMan Buyout VIII and CapMan Mezzanine IV funds, in which Plc is a substantial investor.

 

Press Conference:

We would like to invite the media and analysts to a Finnish press conference today, 26 February 2007 at 2.00 p.m. in CapMan’s headquarters, address Korkeavuorenkatu 32, Helsinki. Partner Anders Björkell, Industrial Advisor Esko Mäkeläinen and Senior Partner Ari Tolppanen from CapMan, President of Special Coatings Business, Matti Lindahl from UPM and President Ari Rinkinen from Walki Wisa Group will be present at the event. The presentation will be shown on CapMan’s Internet pages when the press conference has commenced.  

 

 

For further information, please contact:

Anders Björkell, Partner, CapMan Buyout. tel. +358 9 6155 8302 or +358 40 537 7566

Ari Rinkinen, President, Walki Wisa Group, tel. +358 40 504 7898

CapMan

CapMan is one of the leading private equity investors in the Nordic countries and manages Nordic buyout, mezzanine, technology, life science and real estate funds with approximately EUR 2.9 billion in total capital. Each investment area has a dedicated team and altogether CapMan employs around 100 people in Helsinki, Stockholm, Copenhagen and Oslo. Established in 1989, CapMan has strong experience as a fund manager and as a partner for investors and entrepreneurs. To date CapMan has made over 150 Nordic investments and over 90 exits. The current portfolio encompasses over 60 companies with an aggregate turnover of approx. EUR 2.5 billion and aggregate personnel of 17,000 people. The latest investments are made in Finnish Komas Oy, Danish ScanJour A/S, Swedish QuickCool AB and Norwegian InfoCare ASA. In addition, CapMan has invested in 26 commercial properties in the Helsinki metropolitan area and exited from 22. The B shares of CapMan Plc are listed on the Main List of the Helsinki Stock Exchange since 2001. www.capman.com

 

UPM

UPM is one of the world's leading forest products groups. The Group's sales in 2006 were EUR 10 billion, and it has about 28,000 employees. UPM's main products include printing papers, converting materials and wood products.

The company has production plants in 15 countries and its main market areas are Europe and North America. UPM's shares are listed on the Helsinki and New York stock exchanges. www.upm-kymmene.com

 

Walki Wisa

 Walki Wisa, produces wrappings for the paper and metal industries, food  and consumer packaging materials, decorative and functional laminates, specialist liners for solid and corrugated packaging, facings for the  insulation and construction industries and solutions for technical  applications. Walki Wisa's production units in Finland, Germany, the  U.K. China and Sweden combined have an annual production capacity of 300,000 tonnes, an annual net sales total of EUR 287 million (2006)  and a workforce of around 950 employees.