Fedrigoni says acquisition of Arjowiggins Ltda will boost company's sales to €1bn in 2016.
Italy's Fedrigoni has taken over Arjowiggins Ltda, a banknote and security paper manufacturer located in Salto, Brazil . The transaction was announced at the end of April and completed in May. The total consideration for 100% of the share capital in Arjowiggins Ltda amounts to €85m of which €5m "will be payable in 2016 upon achievement of specific conditions and results," Fedrigoni and Sequana, Arjowiggins' mother company explained.
Arjowiggins Ltda is reportedly the only manufacturer of banknote and security papers in South America. The company employs 400 people and offers a production capacity of 20,000 tpy. In 2014, Arjowiggins' Brazilian subsidiary posted sales of approximately €70m.
According to Fedrigoni, the acquisition of Arjowiggins Ltda will strengthen the group's presence in Brazil and its position as "world leader in the security products and special graphic papers sectors."