Sofidel announces agreement to acquire Royal Paper’s assets in the U.S.
Deal includes four industrial units in Arizona and South Carolina and reinforces the Italian company's expansion strategy in the North American market
Sofidel, one of the leading global tissue paper manufacturers, has signed a Stalking Horse Asset Purchase Agreement (APA) with Royal Interco, LLC, known as Royal Paper. The agreement aims to acquire four industrial facilities located in the states of Arizona and South Carolina, in the United States, and marks a significant move in the Italian company’s growth strategy in North America.
The transaction comprises a paper mill in Gila Bend (Arizona), with an annual production capacity of approximately 61,000 metric tons, as well as two converting units in Phoenix (Arizona) and a converting facility in Duncan (South Carolina). With this acquisition, Sofidel significantly expands its production capacity in the country, serving both the domestic (At-Home) and institutional (Away-from-Home) channels.
As part of the contract, Sofidel plans to incorporate a considerable portion of Royal Paper’s qualified employees, guaranteeing the continuity of operations and the efficient integration of professionals into the company’s structures.
On April 8, 2025, Royal Paper filed for judicial reorganization under Chapter 11 of the United States Bankruptcy Code. The assets are being sold through a competitive auction process, as provided for in Section 363 of the code, and the agreement signed with Sofidel represents the initial proposal (chase bid), which may be outbid by higher offers.
The completion of the acquisition is conditional on the approval of the bankruptcy court, the absence of more advantageous bids and compliance with regulatory requirements. Sofidel’s legal counsel is Cleary Gottlieb Steen & Hamilton, while Lazard is acting as exclusive financial advisor on the transaction.
