Sylvamo Gives Midas Option to Buy European Operations While Retaining Right to 20% of Distributions
Key Facts
Sylvamo said it had entered into a sale option agreement with Midas Atlantic Partners, in partnership with companies from the Najafi group, to make a binding offer to acquire its European operations. The company describes the transaction as potential, meaning the businesses have not yet been transferred. The scope includes its uncoated paper mills in Saillat, France, and Nymölla, Sweden, along with forestry operations and support businesses. Under the proposed structure, Sylvamo will retain a right to 20% of future distributions. Chief Executive Officer John Sims said the company sees the potential transaction as an "important strategic step" for its European operations and for Sylvamo.
The move comes as results for the Europe segment showed a year-over-year decline in sales and a shift to an operating loss. The segment recorded sales of $741 million in 2025, compared with $801 million in 2024. Operating profit went from $10 million in 2024 to an operating loss of $112 million in 2025. Sylvamo said in its annual report that Europe's operating profit fell $122 million year over year. The company attributed the decline mainly to lower prices and a change in product mix, as well as higher planned maintenance, operating and input costs.
Sylvamo's European operations extend beyond the mills covered by the potential deal. According to the company's page on its regional operations, it runs the paper mills in Saillat and Nymölla and has forestry subsidiaries in Saillat. Its operations also include a business services center in Kraków, Poland, and regional sales offices. The Saillat mill employs about 600 people, and the company describes it as the only integrated graphic paper mill in France. The Nymölla mill employs about 500 people and produces uncoated papers for customers in Europe and other markets.
The company's latest financial results reflect continued pressure on performance compared with the same period a year earlier. In the second quarter of 2026, Sylvamo posted a net loss of $11 million, after recording net income of $15 million in the second quarter of 2025. Adjusted EBITDA fell to $60 million in the second quarter of 2026 from $82 million in the corresponding period of 2025. These figures put the company's latest performance alongside the weak profitability recorded by its Europe segment in 2025. The information provided did not state a financial value for the potential deal.
According to Sylvamo's statement, the parties expect to sign a definitive share purchase agreement and transfer the businesses to Midas after completing consultations with works councils and employee representatives in accordance with local laws. The proposed arrangement calls for the transfer in exchange for an agreed level of working capital and cash. Sylvamo's right to 20% of future distributions forms part of the consideration structure described in the statement. The agreement therefore remains at the option and potential-offer stage until consultations are completed, a definitive agreement is signed and closing conditions are met. The statement did not specify the deal's value or the agreed amounts of working capital and cash in the information available.
Sylvamo expects to complete the transaction by the end of the first quarter of 2027, subject to consultations, works council and regulatory approvals, and other closing conditions. This timetable makes the transfer of the businesses contingent on several steps before closing, rather than merely signing the sale option. In trading on November 5, 2026, the company's shares, listed under the ticker SLVM, closed at $33.07. That figure is the recorded closing price for the session. Sims said the company believes the transaction could allow the Europe business to advance with an owner experienced in separating corporate assets and positioning companies for long-term success, while Sylvamo focuses on investment and improving performance.