The Europac Group (Papeles y Cartones de Europa S.A.) has purchased two companies that collectively own a comprehensive packaging plant in the town of Lucena, in Cordoba. The deal was made at €9.8 million, representing a post merger value of 5.5 times EBITDA for Europac. In 2016, the plant produced 16 million sqm of corrugated board, had a turnover of €7.6 million and generated an EBITDA of €1.2 million, representing a margin of 15.8 per cent. Shares in the the business were owned by ICOA (Industrias Cartones Ondulados Andaluces SL) and OASA (Ondulados Andaluces, SA).
Europac has said that it will gradually implement a €10 million investment plan to expand the facilities, increase production, purchase new assets and optimise current assets. It is expected that during the investment period, 25 direct new jobs will be created.
With this purchase, Europac now has a presence in Andalusia, which is an attractive market with strategic sectors, such as agriculture and food. The 15,000 sqm factory, which will now be called Europac Packaging Lucena, has one corrugator and three converting lines, on a 42,000 sqm plot of land. The plant is strategically situated in the geographical centre of Andalusia, covering target markets in Córdoba, Seville, Almería, Málaga, Jaén and Granada.
José Miguel Isidro, Executive Chairman of Europac, said, “The purchase of the Lucena plant is the result of our long-term project to expand in the packaging sector and fulfil the commercial strategy of the Packaging Division in Spain, where the company does not yet have the position it deserves. Europac Packaging Lucena is a very profitable factory with a huge potential for growth. Our goal is to establish it as a leader within the sector.”
Luis Serrano, Country Manager of the Packaging Division of Europac in Spain (and manager of the new plant), said, “Our commercial objective is to strengthen the current position in the industrial sector and move into new markets, specifically those of agriculture and food, which are especially relevant strategic sectors in Andalusia and big consumers of packaging.”
