Finnish Ahlstrom to sell wipes fabrics business

Thu Aug 4, 2011 3:05am EDT

* To sell business to Suominen

* Transaction value 170 mln euros

HELSINKI, Aug 4 (Reuters) – Finnish food wrapping, fibre and specialty paper group Ahlstrom Oyj said it agreed to sell its wipes fabrics business to Suominen Yhtyma Oyj for 170 million euros ($243 million).

The deal makes Suominen the global market leader in non-woven roll goods for wiping, baby care, hygiene, household and industrial wiping, it said.

It would hold 18 percent of the 1.5-billion-euro market with competition from Kimberly-Clark and PGI .

Ahlstrom will become the largest shareholder in Suominen with a stake of 20-28.2 percent, the companies said on Thursday.

The deal, which needs authority approval, is expected to close by the end of October.

($1 = 0.700 Euros)

(Reporting by Jussi Rosendahl; Editing by David Hulmes)

Source:  www.reuters.com

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