Sofidel, one of the world’s leading manufacturers of paper for hygienic and household use, has finalized the acquisition of the assets of Royal Interco, LLC (“Royal Paper”), following the Asset Purchase Agreement (APA) based on a “stalking horse” bid announced in April.
All required closing procedures and conditions have been successfully completed. With this acquisition, Sofidel adds four new facilities to its North American operations, further consolidating a strategic market that today generates 50% of the Group’s total revenue.
The newly acquired sites include a paper mill in Gila Bend, Arizona (with an annual production capacity of 61,000 metric tons), two converting facilities in Phoenix, Arizona, and a converting facility in Duncan, South Carolina. These additions bring Sofidel’s total number of facilities in the United States to 15.
“This is another important milestone in our growth journey in North America,” commented Luigi Lazzareschi, CEO of Sofidel. “The location of these production assets – particularly the three facilities in Arizona – enables us to significantly enhance our presence in the western U.S., boosting our ability to serve customers, shortening delivery times, and improving logistical efficiency.”
Steve Schoembs, CEO of Royal Paper, added: “The Royal Paper team, with its 35 years of experience in paper manufacturing in the U.S. market, is excited to join the Sofidel family and continue serving customers and consumers with renewed strength.”
As part of the integration, Sofidel also plans to offer employment to a significant portion of Royal Paper’s workforce, ensuring business continuity and creating a foundation for shared future growth. In parallel, Sofidel continues to invest in expanding its production capacity in the United States. Two projects are currently underway:
- In Duluth, Minnesota, construction is in progress on new buildings that will house additional converting lines and an automated warehouse.
- In Circleville, Ohio, a third paper machine with a production capacity of 70,000 metric tons is set to be activated, further expanding the site’s output.
