Daily News: March 24, 2015

OpenGate Capital Completes Sale of Kotkamills

OpenGate Capital completed the sale of Kotkamills Oy, to MB Funds, an independent Finnish private equity firm focused on acquisitions in the Nordic market. Financial terms were not disclosed.

Acquired from Stora Enso in July of 2010, Kotkamills represents one of the most complex carve-out and transitions for OpenGate Capital to date. At acquisition, OpenGate launched its operations plan to consolidate Kotkamills’ five legal entities into a single business and establish entirely new IT, HR, treasury, finance, procurement, sales and logistics processes, separate from its parent company, Stora Enso.

Under the guidance of OpenGate Capital, the three Kotkamills business units also underwent three key operational improvements.

Julien Lagrèze, partner at OpenGate Capital, commented, “We saw tremendous potential to create value through the transition and operation of Kotkamills. At entry, the business was underperforming, trading slightly negative EBITDA, when just three years prior, had been producing double digit EBITDA. Through establishing a transition and operations plan prior to acquisition, identifying the right executive talent to lead the business, and by developing new and innovative products, Kotkamills is once achieving double digit performance figures.”

Kotkamills’ heritage dates back to 1872 and is recognized for its excellence in production, customer service, research, product development and sustainability efforts, and is known for products such as the Absorbex, Imprex and Solaris brands. The business has operations in Finland and Malaysia and employs more than 500 people.

OpenGate Capital is a global private equity firm.