PHI has acquired Newark Group International, S.L., the European Division of The Newark Group, a manufacturer of recycled paperboard and converted paperboard products. The division is based in Barcelona and currently operates eight manufacturing facilities in Western Europe. The main companies included in the transaction are the following: Newark Catalana (Spain), Newark San Andrés (Spain), Videcart (Spain), Paper (Spain), Newark Viersen (Germany), Newark Berlin (Germany), Fibor Packaging (Netherlands) y Atelier des Landes (France) among others.
The seller, US-based The Newark Group, is a leading producer of recycled paperboard and converted paperboard products including most importantly Solidboard packaging, Graphicboard and Coreboard. Prior to the selling of the European Division, The Newark Group sold 600 million dollars with approximately 3.200 employees. Last year, The European Division obtained a turnover amounting to 140 million Euros with more than 660 employees.
After the acquisition, PHI will put in practice the operational improvement actions needed in order to allow Newark Europe to return to its leadership position in the market.
For PHI this is the second acquisition of the year 2012 and the fifth in the last three years. With this acquisition, PHI strengthens its position as a specialist in the acquisition of companies in special situations. Particularly, PHI focuses in the acquisition of companies that are spin-offs of large corporations with restructurings needs, or complex carve-outs where the time and transaction security are key issues for the seller.