UPM and Sappi Sign a Definitive Agreement on Graphic Paper Joint Venture

UPM and Sappi have finalized the agreement for their 50/50 graphic paper JV, valued at €1.4 billion, which is expected to close by late 2026. Goldman Sachs remains Neutral on UPM with a price target of €26.

Key Takeaways

• 1.UPM and Sappi signed a definitive agreement for a 50/50 graphic paper joint venture with a combined enterprise value of €1,420 mn.
• 2.UPM will receive €475 mn in cash proceeds, which is lower than the initially expected €613 mn due to a more conservative JV balance sheet.
• 3.The strategic goal of the transaction is to reduce exposure to the declining graphic paper market through consolidation.

Table of Contents

• GS View
• Valuation
• Key Risks
• Disclosure Appendix
• Price target and rating history chart(s)
• Target price history table(s) UPM-Kymmene (UPM.HE)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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