Sofidel Finalizes Acquisition Of Royal Paper’s Assets In The United States

Sofidel, a manufacturer of paper for hygienic and household use, has announced it has finalized the acquisition of the assets of Royal Interco, LLC (Royal Paper) for which it had entered into an Asset Purchase Agreement (APA) based on a “stalking horse” bid.

The agreement between Sofidel and Royal Paper — a recognized U.S. player in both the at-home and away-from-home segments — was announced on April 9. All necessary approval and closing procedures have been now completed and satisfied.

Three Royal Paper facilities in Arizona — a paper mill in Gila Bend (with an annual production capacity of 61,000 metric tons) and two converting facilities in Phoenix — as well as one converting facility in Duncan, SC, officially become part of Sofidel’s production footprint.

“This is another important milestone in our growth journey in North America. The location of these production assets — particularly the three facilities in Arizona — allows us to significantly strengthen our presence in the western United States. This enhances our ability to serve customers and improves our efficiency by reducing delivery times and optimizing logistics,” Sofidel CEO Luigi Lazzareschi said.

“The Royal Paper team and its 35 years of paper manufacturing experience in the U.S. market are excited to join the Sofidel family to serve its customers and consumers more completely,” Royal Paper CEO Steve Schoembs added.

According to a press release, “Sofidel also plans to offer employment to a significant portion of Royal Paper’s workforce, helping ensure continuity and laying the foundation for future growth together.”

The release added: “With this acquisition, Sofidel now operates a total of 15 facilities in the United States, a market that represents 50% of the Group’s total revenue. Meanwhile, two production expansion projects are progressing in the U.S.: one at the Duluth paper mill in Minnesota, where buildings are under construction to house new converting lines and an automated warehouse; and one in Circleville, OH, where a new paper machine — the third at the facility — with a capacity of 70,000 metric tons, will be activated.”

Visit www.sofidel.com.