Schweitzer-Mauduit International today announced the completion of the acquisition of the tobacco-related paper manufacturing assets of KCPI, a Philippines company.  

The assets acquired include buildings, production equipment and related utilities and support assets. The total acquisition cost was US$ 12.1 million, including a working capital adjustment, funded through existing bank lines of credit. The acquisition is not expected to have a significant impact on Schweitzer-Mauduit's 2005 financial results.
The tobacco-related paper manufacturing assets were acquired by PDM Philippines Industries., a wholly-owned indirect subsidiary of Schweitzer-Mauduit. The marketing and sales of the new operation will be coordinated with the efforts of Schweitzer-Mauduit's French operations in the southeast Asian market. The production equipment acquired includes two paper machines, with annual production capacity of approximately 8,500 tonnes, and related converting equipment. Product produced at the mill includes cigarette paper, conventional plug wrap and both base and printed tipping paper. The assets were acquired from KCPI, which had engaged in the manufacturing of tobacco-related paper products for the Philippines cigarette industry since 1967 and had an estimated 60 per cent market share of the Philippines cigarette paper market. (ci)