Combining Papier Union (Inapa’s paper distribution company in Germany) and Papyrus Deutschland, will create a leading company with revenues of around €900 million (in 2017 Papyrus Deutschland had a turnover close to €560 million and a similar business structure than Papier Union which had a turnover of €390 millions). The resulting organization will have around 1.000 employees who will be the backbone of a better platform to serve our German customers.
“This is an important step in our Group’s strategy, which aims to improve the paper business’ efficiency. With the acquisition of Papyrus Deutschland, Inapa will strengthen its position in the largest European market, Germany. Customers will benefit from a wider product portfolio in all graphic and office paper segments, packaging, visual communication, safety and hygiene solutions. Our reinforced geographical presence will allow us to improve customer service and efficiency levels. We are confident that we will be a trusted ally with the scale and scope to meet our customers’ needs in a unique way” comments Diogo Rezende, CEO of Inapa.
This transaction is still subject to the customary regulatory approvals, namely the German Competition Authority, who will shortly be conducting a market test. The transaction is expected to be finalized in December 2018.
The transaction consideration will be settled in part by OptiGroup AB receiving a convertible bond issued by Inapa, subject to a General Meeting approval by the shareholders of Inapa. The bond will be, upon full conversion, convertible into 23% of all shares and voting rights in Inapa. “This is a clear sign that OptiGroup believes in the value creation potential of this agreement”, added Diogo Rezende. In the event of a conversion, OptiGroup would become a relevant shareholder although with no control of Inapa.
Today’s announcement is part of Inapa’s strategy for the 2016-18 triennium, which aims to optimize and increase the efficiency level of its paper distribution business, diversify and grow complementary businesses and strengthen the Group's financial sustainability. With this transaction Inapa Group would be a clear leader in the distribution paper market in the overall geographies where it operates, with total revenues of about €1.400 million and close to 1.900 employees.