The transaction will be financed through a directed share issue of five million UPM shares, with current market value of approximately 60 million Euros, and long-term debt arrangements amounting to 800 million Euros.The transaction is estimated to create annual synergy benefits exceeding 100 million Euros, mainly from 2012 onwards. Synergy benefits will be reached for the most part by rationalizing production, logistics and sourcing, as well as reducing overlapping activities. The related restructuring and investment costs of the combined operations are estimated to be100-150 million Euros.The transaction is estimated to have an immediate positive impact on UPM's cash flow, starting from the second half of next year, and on earnings per share in 2012.The transaction is subject to customary closing conditions, including, among others, the approval of the regulatory authorities. Myllykoski will continue to operate independently until the transaction will be closed. The target is to close the transaction during the first half of 2011."With this transaction, we create the conditions needed for improving UPM's cash flow and mid-term profitability.,” UPM's CEO, Jussi Pesonen, says.Pesonen draws attention to the challenging operating environment of print customers.“Electronic media is posing a growing challenge for the print media. Print media has to be able to respond not only with good content but also with excellent cost competitiveness. UPM has confidence in the potential of the graphic industry. Our target is to be a competitive player that is able to meet customers' expectations,” Pesonen says."Myllykoski is without doubt one of the leading publication paper suppliers. The company has broad-mindedly taken advantage of new business concepts and technologies. We recognise today’s Myllykoski people as solid professionals, who have a strongly customer oriented approach. This attitude and know-how fit very well with UPM,” Pesonen continues."We have made a decision to sell our companies to UPM. I believe that the Myllykoski personnel will, through this arrangement, have good prospects for the future, and that our customers will continue to get good and skillful service and fine products. For our suppliers this can be a possibility to extend their business," says Carl G Björnberg, Chairman of the Board of Directors of family-owned Myllykoski."Myllykoski has been an innovator in paper industry and developed new grades and technologies, of which we are very proud. The Myllykoski name stands for firm belief in quality, reliability and development. We are very proud of Myllykoski's fine achievements," Björnberg adds.“Combining forces and rationalizing production is necessary for the future of the whole industry in Europe. This means both closing unprofitable production capacity and investments in order to increase cost efficiency,” concludes Jussi Pesonen.