Powerflute is a paper and packaging group which seeks to acquire businesses with strong fundamentals whose performance can be improved through a combination of management focus and targeted investment


Buy
Specialty paper and packaging businesses
Established position in attractive markets
Well invested with no major short-term capital needs
Reasons for any underperformance are clear

Improve
Management discipline
Effective leadership
Production expertise
Entrepreneurial culture

Develop
Establish strategy for sustainable growth and margin improvement
Invest in product development and production capabilities
Focus on operational cash generation
Develop long-term strategy to realise return on investment


businesses.

http://www.powerflute.fi/

Increase of shareholding in Harvestia Oy
RNS
RNS Number : 8568N
Powerflute Oyj
31 October 2016
 
31 October 2016
 
POWERFLUTE OYJ
 
Increase of shareholding in Harvestia Oy
 
Powerflute Oyj ("Powerflute" or the "Company") today announces that it has entered into a conditional agreement to purchase 47.4% of the shares of Harvestia Oy ("Harvestia"), the wood supply company in which it already has an interest of 47.4%, from Vapo Oy ("Vapo") for cash consideration of €1.1 million. The transaction remains conditional upon amongst other things receipt of clearances from relevant competition authorities and is currently expected to complete on 2 January 2017. Following completion of the transaction, Powerflute's interest in the issued share capital of Harvestia would increase from 47.4% to 94.7%, with the remaining shares held by Harvestia's senior management.
 
Harvestia is a wood supply company based in Finland, organising the procurement, harvesting and delivery of wood and other forest products to users in the paper, sawmill, energy and biofuel sectors. The company was established by Powerflute and Myllykoski Corporation in 2008 and has been under the joint control of Powerflute and Vapo since 2012. Harvestia takes full responsibility for all aspects of the wood supply chain, including negotiating procurement of wood from forest owners, harvesting operations, storing and management of wood inventories and delivery logistics. Harvestia is currently the sole supplier of wood to Powerflute's semi-chemical fluting mill in Kuopio, Finland.
 
For the year ended 31 December 2015, Harvestia generated revenues of €165.5 million, including sales of €33.4 million to Powerflute and sales of €63.0 million to Vapo. Its profit before taxation for the year was €0.4 million and at 31 December 2015 it had total net assets of €6.4 million. The contemplated transaction will have no impact on the financial results or financial position of Powerflute for the year ending 31 December 2016, but the results of Harvestia will be consolidated into those of Powerflute for the year ending 31 December 2017.