Reno de Medici to acquire Spanish board producer Paprinsa

Reno de Medici wants to grow in the Spanish cartonboard market

01 Oct 2020 − 

After re-entering the Spanish market in 2018, Reno de Medici has now announced aother acquisition in the country. The company will acquire the 140,000 tpy whilte-lined chipboard plant of Paprinsa.

Italian cartonboard manufacturer Reno de Medici (RDM) will increase its footprint in Spain and has announced the takeover of an important recycled cartonboard manufacturer in the country as well as three companies operating in continguous buinesses. Preliminary agreements have reportedly been signed to acquire board producer Papelera del Principado (Paprinsa) as well as the three smaller companies Fergerdell, Cogeneraciò del Pla and Ondupacart, which are all based in the same site. The transaction is scheduled to be closed at the end of March 2021 at the latest.

RDM put the total price for the four entities at €31.2m. The price is provisional and is based on an enterprise value calculated on proforma EBITDA of €5.2m for 2020 and a net financial position of €20.9m.

According to RDM, Paprinsa is the second largest producer of white-lined chipboard in Spain and the number eight in Europe. Its plant in Mollerussa has a capacity of 140,000 tpy, although it is currently only producing 120,000 tpy.

Paprinsa's products include different WLC grades in grammages ranging from 180 to 550 g. According to RDM, with a trim width of 4.8 m, the Mollerussa plant is one of the largest plants in the sector and will be the widest plant within the Italian group.

Board capacities at new plant might be raised

RDM already insinuated that it might expand the new site. The groups sees the potential to raise the board plant's capacity to more than 200,000 tpy in the future. It is reportedly waiting to obtain the integrated environmental authorization for a capacity increase.

Ondupacart is a small company producing corrugating sheets while Fergerdell is the real estate company that owns the 30,000 m² area on which the two manufacturing companies stand. Cogeneraciò del Pla is the former cogeneration plant recently sold to Paprinsa. The company currently provides both plants with maintenance services.

The four companies have a total of 140 employees. In 2019, they generated sales of €65.9m but posted a net loss of €456,000. Their net financial debt stood at €22.9m at the end of last year.

Mollerussa is not far from Barcelona and Castellbisbal, where RDM operates the Barcelona Cartonboard plant. The Italian group had re-entered the Spanish market in late 2018 by acquiring this site. Barcelona Cartonboard produces recycled as well as virgin-fibre board with a capacity of around 200,000 tpy.

Overall, RDM operates seven board plants ant two sheeting plants in Italy, France, Germany and Spain with a combined capacity of 1.2 million t of cartonboard, mostly recycled grades.

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