RDM Group announces 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 of the coated chipboard industry, Papelera del Principado S.A. (“Paprinsa”), and three smaller companies operating in contiguous businesses based in the same site: Fergerdell S.L., Cogeneraciò del Pla S.A. and Ondupacart S.A.
Based on an estimated proforma EBITDA of Euro 5.2 million for 2020, the RDM Group expects to reach an EBITDA increase of between Euro 3 and Euro 5 million over the integration process of the coming three years.
Founded in 1977, Paprinsa operates in the recycled White Lined Chipboard (WLC) business. It manufactures 120,000 tons of recycled chipboard, with a potential capacity of 140,000 tons.
Ondupacart S.A. is a small corrugator manufacturer. Fergerdell S.L. is the real estate company that owns the 30,000 sqm area on which the two manufacturing companies stand.
Cogeneraciò del Pla S.A. is the former cogeneration plant recently sold to Paprinsa. The company currently provides both plants with maintenance services.
The four companies have an overall workforce of 140 employees. The transaction closing is expected not later than March 31, 2021, subject to the fulfillment of some conditions precedent, including, besides the obtainment of some authorizations of labor-law and administrative nature, the obtainment of legal authorizations by the competent Antitrust authorities and the Integrated Environmental Authorization to increase the production capacity of the Paprinsa mill.
