CMPC agrees to sell its Corrugated business in Chile for US$420 million

CMPC agreed to sell its Corrugated business in Chile to multinational Smurfit Westrock for US$420 million, in a transaction that includes activities related to paper manufacturing, packaging solutions, molded containers, and paper and cardboard recovery.

The transaction includes the companies Envases Impresos Cordillera and Chilena de Moldeados (Chimolsa), as well as the assets associated with the business. According to the company, the agreed price is equivalent to approximately 7.6 times the EBITDA of the last twelve months.

The business to be transferred includes paper production in Puente Alto; the manufacture of corrugated cardboard packaging solutions at facilities located in Buin, Til Til, and Osorno; and the production of molded containers through Chimolsa.

The operation also includes the paper and cardboard recovery and recycling activity, carried out through a network of 12 collection points.

CMPC specified that it will maintain operations in Puente Alto through the Softys plant, a unit that is not included in the transaction.

CMPC's CEO, Francisco Ruiz-Tagle, stated that the transaction responds to a long-term strategy aimed at concentrating capabilities and resources in areas where the company believes it has greater competitive advantages.

According to the company, the sale is also part of a process aimed at strengthening its forestry and industrial capabilities and moving toward a more flexible structure, while maintaining its international projection.

Smurfit Westrock, one of the world's leading players in the paper and packaging industry, has operations in 40 countries, 57 paper mills, and 450 converting plants. The company employs nearly 96,000 people globally.

Transaction remains subject to authorization

The agreement must still be reviewed and approved by the National Economic Prosecutor's Office (FNE). The transfer of the companies and assets included in the transaction will be completed once the corresponding authorizations are obtained and the established conditions are met.

Until then, CMPC will continue to normally manage the operations involved in the sale. Together, these activities employ around 1,500 workers.

To finalize the agreement, CMPC had the financial advice of J.P. Morgan and the legal advice of A/C/R Legal.