VERONA, Italy, May 21, 2015 (Press Release) - The Fedrigoni Group is pleased to announce that it has completed the acquisition of 100% of the share capital of Arjo Wiggins Ltda, a Brazilian subsidiary of Arjo Wiggins and South America's sole producer of paper for banknotes and security documents, and special graphic papers.
A price of approximately €85 million was paid for the acquisition, of which €5 million will be payable in 2016 upon achievement of specific conditions and results.
The acquisition of Arjo Wiggins Ltda further strengthens the Group's presence in Brazil (where it has been on the market since 2009 with Arconvert Brasil, which produces and markets self-adhesive labels) and makes it South America's top player in banknote paper, security products, special graphic papers, and self-adhesive items.
The acquisition also achieves important synergies in all of the Fedrigoni Group's core operations and further strengthens the Group's position as world leader in the security products and special graphic papers sectors - products with high value added and high profitability that have achieved excellent growth rates, especially in South America.
This transaction is in line with the international growth and development strategy that the Group has implemented in recent years, and allows us to forecast 2016 turnover of over €1 billion, with 70% generated on foreign markets compared to the current 64%, says CEO Claudio Alfonsi, who continues, "Thanks to this acquisition, the Fedrigoni Group is now South America's largest player in the high value added paper sector. We are extremely pleased, because not only we have strengthened our position in Brazil, a strongly expanding market, we now have direct access to South America's high valued added markets with special pressure-sensitive labels."