UPM To Buy Myllykoski In $1.2B Deal

Law360, New York (December 21, 2010, 1:16 PM EST) -- Finnish forest products giant UPM-Kymmene Corp. announced Tuesday it would acquire paper maker Myllykoski Corp. and partner company Rhein Papier GmbH in a transaction valued at €900 million ($1.2 billion).

UPM said it will finance the deal — which is expected to improve its cash flow and mid-term profitability — through the directed issuance of five million new UPM shares at a current market value of €60 million as well as long-term debt arrangements of €800 million.

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