RDM Barcelona Cartonboard has signed four preliminary agreements for the acquisition of four Spanish companies. The subsidiary of the Italian group Reno De Medici intends to acquire one of the main European players in the flat cardboard industry, Paprinsa, and three small companies based on the same site, Fergerdell, Cogeneraciò del Pla and Ondupacart. 140 people work in these four companies.
With these agreements, RDM aims to increase its earnings before interest, taxes, depreciation and amortization (EBITDA) by between 3 and 5 million euros over the next three years. (For 2020, the group expects EBITDA of ?5.2 million).
To achieve this objective, the papermaker expects to benefit from synergies with these new sites and its cardboard plant in Barcelona. It has also planned to increase Paprinsa's production capacity and optimize certain supply contracts.
Located in Mollerussa, less than an hour from the RDM Barcelona Cartonboard plant, Paprinsa specializes in white-lined chipboard (WLC). It produces annually 120,000 tons of panels of different grammages (from 180 to 550g/m²) 2 ) made from recycled cardboard, making it WLC's eighth largest plant in Europe.
The paper mill has a cutting width of 4.8 metres. By exploiting this width differently, RDM Group intends to increase the mill's production capacity from 140,000 to more than 200,000 tonnes per year.
Ondupacart is a small manufacturer of corrugated cardboard. Cogeneraciò del Pla is the former cogeneration plant recently sold to Paprinsa. It currently provides both plants with maintenance services. And Fergerdell is the real estate company that owns the 30,000 m² area on which the two plants are located.
Michele Bianchi, CEO of RDM Group, says: "We continue to strengthen our competitive position as the leading company in Southern Europe in the recycled board segment, within the framework of a clear long-term strategy and building on a solid financial situation.
The leader adds: "This allows us to be ready to make the most of a demand that has proven to be strong even in the most critical moments of the Covid-19 pandemic, due to the essentiality of the material we produce."
The transaction is expected to close no later than March 31, 2021.
