Sofidel expands North American operations with Royal Paper asset acquisition

Sofidel, one of the world’s leading producers of paper for hygienic and household use and known for its Regina brand in Italy and Europe, has finalized the acquisition of Royal Interco’s assets. This follows the Asset Purchase Agreement (APA) announced on April 9, based on a “stalking horse” bid.

The transaction includes three facilities in Arizona, a paper mill in Gila Bend with an annual production capacity of 61,000 metric tons and two converting plants in Phoenix, along with a converting facility in Duncan, South Carolina. All necessary approvals and closing procedures have now been completed.

“This is another important milestone in our growth journey in North America. The location of these production assets – particularly the three facilities in Arizona – allows us to significantly strengthen our presence in the western United States. This enhances our ability to serve customers and improves our efficiency by reducing delivery times and optimizing logistics,” stated Luigi Lazzareschi, CEO of Sofidel.

Steve Schoembs, CEO of Royal Paper, added: “The Royal Paper team and its 35 years of paper manufacturing experience in the US market are excited to join the Sofidel family to serve its customers and consumers more completely.”

 

Sofidel also plans to offer employment to a significant portion of Royal Paper’s workforce, ensuring operational continuity and supporting future growth.

With this acquisition, Sofidel now operates 15 facilities in the United States, a market that accounts for 50% of the Group’s total revenue.

Additionally, Sofidel continues to advance two other expansion projects: one at the Duluth mill in Minnesota, where new converting lines and an automated warehouse are under construction, and another in Circleville, Ohio, where a third paper machine with a 70,000-metric-ton annual capacity will soon be activated.