Sylvamo has entered into a put option agreement with Midas Atlantic Partners, in partnership with The Najafi Companies, following a binding offer to acquire the company’s European business. The proposed transaction covers its uncoated freesheet paper mills in Saillat, France, and Nymolla, Sweden, as well as forestry assets and related operations.
Before making a final decision, Sylvamo will carry out the applicable consultation processes with works councils and employee representatives, in accordance with local legislation.
Once these consultations are completed, the parties expect to sign a definitive share purchase agreement. Under the proposed terms, Midas Atlantic Partners would acquire the business with an agreed level of working capital and cash, while Sylvamo would retain the right to receive 20% of future distributions.
The transaction is expected to close by the end of the first quarter of 2027.
“We believe this potential transaction represents an important strategic step for our Europe business and Sylvamo. In Europe, it would create the opportunity to move forward with an owner experienced in corporate carve-outs and positioning businesses for long-term success. After the proposed transaction, Sylvamo would be a more focused company, with greater ability to invest in our business, strengthen our performance and pursue world-class excellence. We believe that focus will make us a stronger company and better position us to create sustainable value for our employees, customers and investors,” said John Sims, chief executive officer.
