Sylvamo Announces Plans to Sell Europe Business

Sylvamo Corporation (NYSE: SLVM) has entered into a put option agreement with Midas Atlantic Partners, in partnership with The Najafi Companies, for a binding offer to acquire its European business, including uncoated freesheet paper mills in France and Sweden.

The proposed transaction covers Sylvamo's paper mills in Saillat, France, and Nymölla, Sweden, together with its forestry assets and supporting business operations.

Sylvamo said it will undertake the required consultation processes with works councils and employee representatives in accordance with local legislation before making a final decision on the transaction.

Following completion of the consultation processes, the parties expect to enter into a definitive share purchase agreement. Under the proposed terms, the European business would be transferred to Midas Atlantic Partners with an agreed level of working capital and cash. In return, Sylvamo would retain the right to receive 20% of future distributions.

Completion of the transaction is expected by the end of the first quarter of 2027.

Strategic restructuring

Sylvamo Chief Executive Officer John Sims said the proposed sale would provide the European business with an owner experienced in corporate carve-outs and positioning businesses for long-term growth.

He added that the transaction would allow Sylvamo to become a more focused company, with greater capacity to invest in its remaining operations, improve performance and pursue operational excellence.

The proposed divestment represents a strategic restructuring of Sylvamo's European operations, while the company would retain a 20% entitlement to future distributions under the proposed arrangement.