Stora Enso announced this week that it has signed an agreement to divest its Corenso business operations to the Finnish packaging materials company Powerflute Oyj. The enterprise value of the transaction is approximately Euro 90 million, and the expected all cash consideration approximately Euro 75 million.

Closing of the transaction is expected to take place during the fourth quarter of 2014 subject to customary conditions. The transaction's impact on Stora Enso's income statement will be approximately break-even.

Corenso is part of Stora Enso Renewable Packaging Division. Stora Enso is focusing on selected packaging segments in Packaging Solutions and Consumer Board and further developing and investing in these businesses. The divestment is a natural step in streamlining the business and transforming Stora Enso into a customer-focused renewable materials company in growth markets.

"We have now found a good new owner for Corenso who we believe can give the company the attention it deserves and develop it further. By divesting Corenso, Stora Enso can better focus on its strategic direction," says Hannu Alalauri, SVP Packaging Solutions, Stora Enso Renewable Packaging.

Corenso is one of the world's leading integrated producers of high-performance cores and high-quality coreboard. It employs about 920 employees in 10 countries in Europe, Asia and North America and has its head office in Lahti, Finland.