RDM Group announces that its affiliate RDM Barcelona Cartonboard SAU has signed four preliminary agreements for the acquisition of 100% of the capital stock of four companies incorporated in Spain. The agreement includes the acquisition of one of the main European players in the coated particle board industry, Litter mill of the Principality SA (Paprinsa), and three smaller companies operating in contiguous businesses based in the same location: Fergerdell SL, Cogeneraciò del Pla SA and Ondupacart SA.
Founded in 1977, paprinsa operates in the recycled white liner (WLC) chipboard business. The company has both its headquarters and its factory in Mollerussa, just 130 km from Barcelona and less than an hour from the RDM Barcelona Cartonboard plant. It manufactures 120.000 tons of recycled chipboard, with a potential capacity of 140.000 tons. In the last six years, Paprinsa has made significant investments of more than 30 million euros in its plant. Production includes a wide range of grades and weights (180 to 550g).
The provisional price for the acquisition of the four companies is based on a total business value of 31,2 million euros, calculated on the proforma EBITDA for 2020 of 5,2 million euros, and on an estimated NFP of about 20,9 millions of euros. RDM Group will finance the acquisition with its own cash resources.
The closing of the operation is scheduled no later than March 31, 2021, subject to the fulfillment of some conditions precedent, which include, in addition to obtaining some labor and administrative authorizations, obtaining legal authorizations from the Antitrust authorities; and the Integrated Environmental Authorization to increase the production capacity of the Paprinsa plant.
