Sofidel has finalised the acquisition of Royal Interco’s (Royal Paper) assets, boosting its At-Home and AfH presence across North America.
The company had entered into an Asset Purchase Agreement (APA) based on a stalking horse bid on 9 April.
All necessary approval and closing procedures and conditions have been satisfied.
The company has four facilities in North America that will be part of the acquisition: three facilities in Arizona – the paper mill in Gila Bend (with an annual production capacity of 61,000 metric tons) and two converting facilities in Phoenix – and one converting facility in Duncan, South Carolina, officially become part of Sofidel’s production footprint.
Luigi Lazzareschi, Chief Executive of Sofidel, said: “This is another important milestone in our growth journey in North America.
“The location of these production assets – particularly the three facilities in Arizona – allows us to significantly strengthen our presence in the western United States.
“This enhances our ability to serve customers and improves our efficiency by reducing delivery times and optimizing logistics.
Steve Schoembs, the Chief Executive of Royal Paper, added: “The Royal Paper team and its 35 years of paper manufacturing experience in the US market are excited to join the Sofidel family to serve its customers and consumers more completely.”
Sofidel confirmed it plans to offer employment to “a significant portion” of Royal Paper’s workforce.
With this acquisition, Sofidel now operates a total of 15 facilities in the United States, a market that represents 50% of the group’s total revenue.
Meanwhile, two production expansion projects are progressing in America: one at the Duluth paper mill in Minnesota, where buildings are under construction to house new converting lines and an automated warehouse; and one in Circleville, Ohio, where a new paper machine – the third at the facility – with a capacity of 70,000 metric tons, will be activated.
