Acquisition and Disposal of Papierfabrik Scheufelen
In 2009, Powerflute acquired Papierfabrik Scheufelen, a leading manufacturer of coated woodfree papers based in Lenningen, Germany.
Prior to its acquisition by Powerflute, Scheufelen had become highly leveraged as a result of a number of major investment projects intended to improve efficiency and increase output in the face of intense competitive pressure. After experiencing challenging market conditions for many years, it was the financial crisis of 2008 that finally lead to Scheufelen’s insolvency.
Powerflute acquired the business from insolvency and was able to preserve more than 570 jobs in the community of Lenningen, where Scheufelen was the major employer. Following successful restructuring of the workforce and the introduction of new working practices, the performance of the business improved and healthy levels of profitability were achieved.
During the latter stages of 2010, Powerflute received a number of approaches for the business and in May 2011 it was sold to Paper Excellence, an integrated pulp and paper group. Powerflute received cash consideration of EUR 32.5 million, realising a gain of more than 100% on its initial investment.