International Paper Puchases Packaging Facility in Morocco

SEATTLE (Scrap Monster): The Memphis, Tennessee-headquartered International Paper has announced that it has reached an agreement with the Europac Group to purchase its packaging factory in Tangier, Morocco. The agreement has received all relevant approvals including the approval of the Conseil du Concurrence, the anti-trust authority in Morocco. The deal is valued at 40 million euros. After balance sheet adjustments, the transaction deal value amounts to 44 million euros. The closing of the transaction is expected by this month end.

According to Jose Miguel Isidro, Executive Chairman of the Europac Group (Papeles y Cartones de Europa, S.A.), the company is of the view that Moroccan market is no longer strategic, mainly because of the difficulty in increasing its footprint. Further, the Strategic Plan 2015-2018 formulated by the company focuses on expanding its operations in packaging and waste management sectors in Spain, which the company presently considers as the priority market for its operations. The above mentioned factors have led the company to sell its Tangier factory, Isidro noted.

In accordance with the Strategic Plan, the Europac Group had recently acquired Transcon Valladolid, S.A., a waste management in Valladolid, Spain for 3.7 million euros. With this acquisition, the company is expected to strengthen its position as a comprehensive waste management service provider in Castile and León. Also, the Europac Group had purchased two Spanish companies that collectively own an integrated packaging plant in Lucena, Cordoba, thereby making its presence in Andalusian community, which is considered as an attractive market with several strategic sectors.

The Tangier factory was inaugurated in February last year and had reported a turnover of 7.6 million euros at the end of 2016 on production of 16 million m²of cardboard, with a negative EBITDA of 2 million euros. Further to the deal, the facility will now become part of International Paper’s Moroccan corrugated packaging business. The company expects the facility to add significant synergies to its box business in Morocco. The newly acquired factory is also expected to complement the operations of its Kenitra containerboard mill.

About International Paper Co.

International Paper is a global leader in the paper and packaging industry with manufacturing operations in North America, Europe, Latin America, Asia and North Africa. Headquartered in Memphis, Tenn., the company employs approximately 65,000 people and is strategically located in more than 24 countries serving customers worldwide. The company had posted net sales of $21 billion in 2016.

About Europac Group

The Europac Group is an integrated operator with activities in all areas of the paper and packaging industry value chain, from end-to-end waste management and forestry operations for the procurement of the raw materials necessary for the production of recycled paper and kraftliner at the Group’s plants in Spain, France and Portugal, to the manufacture of cardboard sheets and boxes as end products.