News

Collins Stewart completes successful placing for Powerflute Oyj

18 December 2008

Collins Stewart plc is pleased to announce the successful completion of a 10 million euro placing for Powerflute Oyj - the provider of premium quality fluting for corrugated packaging to enable its 45 million euro deal.

Powerflute's agreement to acquire the assets of Papierfabrik Scheufelen GmbH & Co KG ("Scheufelen") announced on 1 October 2008 (the "Acquisition") has now become unconditional. Total consideration for the property, plant and equipment is 20 million euro, with a further anticipated investment of 25 million euro in working capital. Completion of the Acquisition is expected to take place by 31 December 2008.

Collins Stewart is acting as Nominated Adviser and Broker to Powerflute Oyj. The Company's market capitalisation following the placing will be £23.2 million.

Chief Executive of Collins Stewart, Mark Brown, said:' Given the current conditions in equity markets, we are delighted to have raised 10 million euro of new equity for Powerflute, enabling them to fund what is set to be a transformational acquisition for the Company.'

Dr. Dermot F. Smurfit, Chairman of Powerflute, said: 'This acquisition is an excellent fit for our strategy. We look forward to delivering a material improvement to Scheufelen's profitability.'

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