14 POYRY ANDRITZ ¨


the Abris Capital acquisition of the Romanian Pehart Tec forms a future platform for further consolidation. In the Iberian peninsula, strategic investments include Cominter acquiring Cellulosas de Hernani, and Portucel acquiring AMS. The acquisition by Portucel (now the Navigator Company) of AMS-Paper in Portugal anticipates a future significant move into the tissue sector. Other strategic acquisitions include purchase of independent converters or independent converters acquiring base paper mills.


Industrial buyers complement their portfolios with acquisitions and target stronger position, consolidation and synergy benefits. Financial investors have become more interested in tissue acquisitions than before. In many cases, there is a clear strategic intent behind these deals as well.


Characteristics of organic growth and new builds A large share of the new tissue capacity in Europe has been built by larger companies that have renewed their assets or grown organically. • Tronchetti has built 350,000 t/a new capacity in the last some 15 years


Year Acquirer Company Year 2016


Acquirer Company Eco-Invest SVK


Undisclosed bidder, PRT Eurovast, ITA


Abris Capital Partners, POL/ROM


2015


Portucel, PRT Drenik, SER WEPA, DEU


2014


Target Copmany Paloma


Fapajal - Farica De Papel Do Tojal, S.A.


Cartiera Eurotec


S.C. Pehart Tec S.A. AMS BR Star Paper


Higi Papirsoft Co Ltd Lucart France


Cominter Inversiones, ESP Celulosas de Hernani Cartiera Eurotec, ITA WEPA Lucca S.r.l. Roto-cart, ITA


WEPA Lucca S.r.l. Palero invest, LUX


ICO Industria Cartone Ondulato, ITA


2013 Sofidel, ITA


Northwood Paper Sales & WEPA Papierfabrik P. Krengel, GBR, DEU


Vajda Papir, HUN


• SCA has closed down 180,000 t/a obsolete capacity and built 275,000 t/a new


• Sofidel has grown outside Italian markets with 250,000 t/a new capacity


• WEPA has soon built 190,000 t/a new capacity, speeding up in the last few years New capacity has also been


built by small and medium size established players and by newcomers. The Iberian Peninsula specifically has seen many investments (AMS, Suavecel, Paper Prime, Renova)


Target company 2016


Northwood Hygiene Products Ltd, UK Midland Paper Products Ltd Northwood Hygiene Products Ltd, UK Freedom Paper Converters Ltd. Vrancart SA Adjud, ROM Lucart Group, HUN


Rom Paper SRL Bokk Paper


Sofidel, ITA O-PAC S.r.l., CZE


Global Hygiene SAS, FRA Celtex SpA, ITA


2015 Forest Papir Kft


WetWipes International s.r.o. Arjowiggins SAS (Charavines site)


Hecatec GmbH & Co. KG


Northwood Paper Sales Limited, UK Disposables UK Limited The Tissunion Europ,


Paper + Design GmbH Optimal Care SA (30% Stake)


2014 NorthEdge Capital Fund I LP, UK Accrol Group Holdings plc Duni AB, SWE


November/December 2017 Mills Sladki Vrh, SVN Sao Juliao do Tojal, PRT


Fabbriche di Vallico, ITA Petresti, Dej, ROM


Vila Velha Rodao, PRT Baja, HUN Troyes, FRA Hernani, ESP


Fabbriche di Vallico, ITA Piano della Rocca, Lunata, ITA


Hakle-Kimberly Deutschland Reisholz Mill, Düsseldorf, DEU Kimberly-Clark S.p.A. Northern Tissue Group


Alanno, ITA Lancaster, GBR SCA Hygiene Products Tissue Bridgend Mill, Llangynwyd, GBR SCA Hygiene Products Avallon MBO fund II, POL Kimberly-Clark Klucze


Drammen, NOR Klucze, POL


and more capacity increases are planned. Eastern Europe has also seen an increase of new investments. Part of these has been made by established large groups such as SCA and ICT. Russian companies such as Syassky and Syktyvkar Tissue Group have also grown to sizable players in a relatively short time. Pehart Tec investments have been supported by the new owner, Abris Capital. There are various players adding single width machines to replace old capacity, or just to


Target description


UK-based tissue converter UK-based tissue converter


Romania-based tissue converter Hungary-based tissue converter


Hungary-based tissue converter


Czech Republic-based wet wipe converter


France-based specialty paper mill site where GH plans a TM


Germany-based tissue converter UK-based tissue converter


Spain-based wet wipe converter


UK-based large independent tissue converter


Germany-based napkin converter


Pulp Paper & Logistics


Segment/Assets 4 TMs, 77kt/a


1 TM, 33kt/a 1 TM, 18kt/a


4 TMs, 120kt/a 1 TM, 30kt/a


1 TM,30 kt/a 1 TM, 32kt/a 2 TMs, 38kt/a 1 TM, 18kt/a 1 TM, 30kt/a 1 TM, 50kt/a


1 TM, 50kt/a (TAD)


1 TM, 33kt/a 1 TM, 55kt/a


1 TM, 22kt/a 1 TM, 32kt/a


grow or start producing tissue. Only the largest industrial companies have added double width machines.


New generation of tissue entry Tissue capacity increase is not only by expansion of existing producers but there is versatile motivation for new entrants. This can be push or decline of their current businesses – for example, smaller pulp mills losing competitiveness and integrating to tissue or graphic paper sites, looking for new opportunity due to their declining market. There are also cost benefits for this type of entry in terms of both manufacturing and investment costs. For a newcomer the entry is often much easier to an existing site. Entry into the tissue market


often starts from converting. When capacity is high enough for a paper machine, many independent converters start to consider their own paper production. Margins


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