Ahlstrom and Owens Corning have terminated the agreement regarding the planned divestiture of Ahlstrom's Building & Wind business unit to Owens Corning following challenges associated with obtaining regulatory clearance in Germany for the transaction.
Ahlstrom will continue to operate and develop the Building & Wind business unit as before and it will be reported as part of the Filtration & Performance segment. In 2015, net sales of the Building & Wind business unit was EUR 83.5 million and the adjusted operating profit EUR 5.9 million. In January-March 2016, net sales amounted to EUR 23.5 million and the adjusted operating profit to EUR 2.1 million.
'In 2015 we were approached by Owens Corning to acquire the Building & Wind business unit and engaged in exclusive negotiations with them. Following the unexpected challenges with the German competition authorities, and after careful consideration, we have decided to keep the business intact as part of the Ahlstrom portfolio of innovative fiber-based materials. The performance of the Building & Wind business unit, as that of the entire Ahlstrom Group, has clearly improved since negotiations were initiated and the business is today contributing positively to our profitability and cash flow', says Marco Levi, President & CEO of Ahlstrom. 'We are fully committed to serving our customers and reinforcing the unit's competitive position. The business will contribute to our strategic goals of adjusted operating profit margin above 8% by 2018 and maintaining gearing below 100%.'
Restated historical financial information will be available prior to the January-June 2016 interim report, which will be published on August 3, 2016.
The divestment was announced on January 21, 2016. The German competition authority opened a second-phase investigation into the planned transaction on April 8, 2016.