The transaction includes the acquisition of CPG’s Carmignano and Condino Mills in Italy and its digital imaging business in Cham, Switzerland, as well as all brands and knowhow. ??

The transaction, which will be funded through internal cash resources, is conditional on the approval from certain competition authorities. It is expected to be completed during Q1 2018.

Sappi said the acquisition will support its diversification strategy, strengthens its speciality and packaging papers footprint and skills and adds 160,000 tonnes of speciality paper to its capacity.??

A Sappi spokesperson said: “The acquisition is fully in line with Sappi’s Vision2020 targets and our strategic objectives of investing in high growth segments. CPG had earlier reached a conclusion to focus on their property development portfolio and that their business can grow faster as part of a larger international company.

??“The transaction brings clear benefits to our existing and future customers. It will add products complementary to Sappi’s existing portfolio including for consumer goods – flexible packaging papers, food and non-food use and label papers, industrial release – glassine, coated release liner and facestock, and digital imaging – sublimation and large-format inkjet.

”??Sappi said the deal will also generate economies of scale and synergies, accelerate innovation and new product development, improve near-term profitability and serve as a platform for organic growth and further acquisitions.??

Sappi’s turnover for the financial year ended September 2017 was $5.3bn (£3.96bn). This acquisition will add €183m (£159m) of sales and approximately €20m of sustainable EBITDA.

?CPG’s speciality paper business will continue to operate separately and independently from Sappi until clearances from the authorities are obtained.??

Sappi said details regarding the potential rebranding of the acquired CPG operations will be finalised during the integration phase.

Sappi, which is headquartered in Johannesburg, South Africa, has more than 12,000 employees, manufacturing facilities on three continents and customers in over 150 countries worldwide.

??This acquisition will add 380 more people to the company – 210 based at CPG’s Carmignano mill, 120 at the Condino mill and 50 at the digital imaging business in Cham.