Sofidel Expands U.S. Operations with Royal Paper Acquisition
Deal News | Jun 20, 2025 | Finance Community IT - 1 Corporate M&A
Sofidel, the Italian paper manufacturing group known for its Regina brand, has acquired the assets of Royal Paper in the United States. This acquisition includes three facilities: a paper mill in Gila Bend, Arizona, and converting plants in Phoenix, Arizona, and Duncan, South Carolina. Lazard, led by Igino Beverini, served as the financial advisor, and Cleary Gottlieb Steen & Hamilton provided legal counsel. Sofidel aims to integrate a significant portion of Royal Paper's workforce, expanding its total to 15 facilities in the U.S., which accounts for half of its revenue. The acquisition aligns with Sofidel's strategy to enhance its presence in the Western U.S., improve logistical efficiency, and reduce delivery times. Meanwhile, Sofidel is also advancing expansion projects in Minnesota and Ohio, aiming to further bolster its production capabilities in North America. Luigi Lazzareschi, Sofidel's CEO, highlighted the importance of this acquisition in reinforcing their competitive position in the region.
Sectors
- Paper & Forest Products
- Mergers & Acquisitions
Geography
- United States – The acquisition of Royal Paper's assets by Sofidel occurs in the U.S., highlighting the geographic focus of the expansion.
- Italy – Sofidel is an Italian company leading the acquisition, which underscores the Italy-U.S. business relationship in this deal.
Industry
- Paper & Forest Products – The article relates to the acquisition of Royal Paper's assets by Sofidel, a key player in the paper production industry.
- Mergers & Acquisitions – The article discusses Sofidel's acquisition transaction, involving financial and legal advisors, which falls under this sector.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sofidel | Acquirer | Company | An Italian group active in the production of paper for hygienic and domestic use, acquiring Royal Paper's assets. |
| Royal Paper | Target | Company | A U.S. paper producer whose assets were acquired by Sofidel. |
| Lazard | Financial Advisor | Company | Provided financial advisory services to Sofidel for the acquisition. |
| Cleary Gottlieb Steen & Hamilton | Legal Advisor | Company | Served as Sofidel's legal advisor for the acquisition. |
| Luigi Lazzareschi | CEO of Sofidel | Person | Commented on the strategic significance of the acquisition. |
| Steve Schoembs | CEO of Royal Paper | Person | Expressed enthusiasm about joining Sofidel. |