RDM Group has confirmed that its subsidiary RDM Barcelona Cartonboard S.A.U. has signed four preliminary agreements for the acquisition of 100% of the share capital of four companies incorporated in Spain. The deal covers the acquisition of one of the main European players in the coated chipboard industry, Papelera del Principado S.A., and three smaller companies operating on the same site: Fergerdell S.L., Cogeneraciò del Pla S.A. and Ondupacart S.A..
Michele Bianchi, CEO of RDM Group, said, “The acquisition confirms that RDM Group continues to invest with the target of profitable growth, by selecting companies that fit a consistent business approach. We keep strengthening our competitive positioning as a leading company in Southern Europe in recycled cartonboard, as part of a clear long-term strategy and leveraging on a solid financial position. This allows us to be ready to grasp the utmost benefits from a demand that has proven to be solid even in the most critical times of the Covid-19 pandemic, due to the essentiality of the material we produce.”
He also stated, “This is not only an attractive transaction in absolute terms. It is also an ideal acquisition to further strengthen our Group performance, when considering the value we can generate by including Paprinsa in the multi-mill approach of our asset portfolio, and the visible synergies that we can achieve by leveraging on the proximity with the Barcelona Cartonboard mill”.
Based on an estimated pro-forma EBITDA of €5.2m for 2020, the RDM Group expects to reach an EBITDA increase of between €3-5m over the integration process of the coming three years. Such benefits will be achieved mainly thanks to the full utilisation of Paprinsa’s production capacity, the synergies with the Barcelona plant and the revision of certain procurement contracts. The four companies have an overall workforce of 140 employees.
The transaction closing is expected not later than March 31, 2021, subject to Antitrust authorities and the Integrated Environmental Authorisation to increase the production capacity of the Paprinsa mill.
