Hannes Snellman Advised UPM‑Kymmene on JV Combining Graphic Paper Businesses with Sappi

Hannes Snellman is advising UPM-Kymmene Corporation (UPM) in establishing a joint venture to combine UPM’s graphic paper business and Sappi Limited’s graphic paper business in Europe with a combined enterprise value of the respective businesses of €1,420 million, excluding the value of expected synergy benefits. The joint venture is to include entire UPM Communication Papers business, including eight UPM Communication Papers’ paper mills at Kymi, Rauma and Jämsänkoski in Finland; Nordland, Augsburg, Schongau in Germany; UPM Caledonian paper mill in the UK, and Blandin paper mill in the USA.

The contemplated joint venture represents a decisive response to the structural changes in the European graphic paper industry, offering a path to strengthen the resilience of the industry and provide long-term commitment and supply security to graphic paper customers.

The complex, multi-jurisdictional transaction with agreements covering both JV structure, governance, carve-out and commercial arrangements required close-knit cooperation with broad UPM team and across all advisors.

Our team was led by partner Tuire Kuronen and comprised Satu Kokko, Wilma Montonen, partner Mikko Heinonen and Elias Vanninen (M&A and JV Structure, Commercial Arrangements), Anniina Kunnaton and Sofia Tyykiluoto (Real Estate, Environment), partner Markus Bremer (Finance), partner Maria Landtman and Saara Järvelä (Energy), partner Mikko Huimala and Niilo Melkas (Competition and Regulatory), partner Sanna Honkinen and Anna Nyberg (Employment), Jenni Parviainen (Tax), Vivi Jaatinen and Emilia Reis (M&A).