The acquisition includes one paper machine in Pietarsaari and one paper machine in Tervasaari. Both machines rank among the largest and most efficient of its kind in Europe. The machines produce packaging paper (sack/kraft paper). The annual production capacity is approximately 300,000 tons. The business has approximately 185 employees. Other activities at the two sites will remain owned and operated by UPM.”We see great potential in the acquired business, as it will now be integrated in a business focused on packaging paper. The acquisition will give us a strong platform to continue developing our offering within smarter packaging solutions. In addition, the acquisition significantly reduces our pulp exposure and adds a much larger Euro cost base, which we view positively,” says Per Lindberg, CEO of Billerud.“UPM considers continuing consolidation to be critical to the cost competitiveness of the whole industry. With this transaction, UPM and Billerud will have an improved opportunity to develop businesses that are at the center of each company’s strategy. Billerud is a solid and successful player in the packaging paper business, whereas UPM is increasingly focusing on graphic papers and selected speciality papers,” says Jyrki Ovaska, President of UPM’s Paper Business Group.Billerud's annual net synergies are estimated to approximately 30 million Kronor with full financial impact from year-end 2013.The acquired business achieved sales of approximately 220 million Euros (two billion Kronor) and EBITDA of approximately 18 million Euros (165 million Kronor) in 2011.Long-term agreements have been signed between the parties where UPM, among other things, will deliver production inputs such as pulp, steam and electricity to Billerud.The acquisition is subject to applicable regulatory clearances.