Fredericks Michael & Co. acted as the exclusive financial advisor to Suominen Corporation on the strategic divestiture of its non-core wet wipes business, Codi International BV to Value Enhancement Partners. Codi International is a leading European wet wipes producer with net sales of approximately EUR 50 million in 2012. The acquisition price consisted of a fixed cash component and contingent cash component based on the financial performance of Codi International in 2013.
The transaction further strengthens Suominen’s strategic focus on nonwovens production and sales and clarifies its corporate structure and position in the wipes value chain particularly with Suominen’s nonwovens customers. The divestitures also positions Suominen to further focus its resources on the growth and competitiveness of its core nonwovens activities.
FM&Co. advised Suominen on a multi-step engagement process which included a strategic review of alternative ownership options for Codi, assessment of potential partners for Codi under alternative business models and an auction process including the preparation of a selling memorandum, valuation, assistance with management presentations and due diligence, structuring and negotiations through closing.
About Suominen Corporation
Suominen supplies its industrial and retail customers with nonwovens and flexible packaging for use in consumer products worldwide. Suominen is the global market leader in nonwovens for wipes. The company employs more than 1,000 people in Europe and in the United States. Suominen’s net sales in 2012 amounted to MEUR 410.4 and operating profit excluding non-recurring items was MEUR 12.9 (continuing operations). The Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange.
About Value Enhancement Partners
Value Enhancement Partners (“VEP”) is a privately owned investment firm founded in 1999 and based in Amsterdam, the Netherlands. VEP focuses on medium sized industrial companies in the Benelux and adjacent geographies, where it actively teams up with management in realizing opportunities to accelerate performance and growth.