Fedrigoni and Mohawk have agreed on a manufacturing partnership that could ultimately result in Fedrigoni taking over the US-based paper maker.
Over the summer Bain Capital and BC Partners became joint owners of Fedrigoni, the Italian manufacturer of special papers, premium labels and self-adhesive materials with a turnover of 1.76 billion EUR. The aim of the two funds is to continue to expand the business, which has already executed a number of M&A deals.
Mohawk, a family-owned manufacturer of fine paper and envelopes based in Cohoes in New York state, recently agreed new financing with CIT Northbridge Credit. Fedrigoni participated in the fresh financing through a convertible instrument.
The alignment between Mohawk and Fedrigoni carries the potential to formalise a strategic transaction over the next several years. Fedrigoni said the two firms shared core values of craftsmanship, innovation and sustainability, and the manufacturing partnership would allow the duo to expand the global reach of their specialty papers. Fedrigoni Group CEO Marco Nespolo said the agreement was a further element in the acquisitive group’s growth strategy.
As explained by Nespolo, «Fedrigoni intends to consolidate its global primacy in specialty papers for luxury packaging.
Many synergistic opportunities are also present for our self-adhesive materials division, which will expand its leading position in premium labels for the wine market in the US. This is an important step forward to reinforce our geographical penetration in the United States, where we will directly produce and distribute high value-added papers, leveraging all possible industrial and commercial synergies with our group. We will also better support the ESG (Environmental, Social and Governance) strategies of our clients, especially those in the luxury sector by giving them the option of moving to near shoring, i.e. outsourcing of work to a neighbouring country, rather than global purchasing».
«We are pleased to build upon our family’s legacy of manufacturing and distributing paper recognised and trusted around the world for the many uses of our customers» says Thomas O’Connor Jr, CEO of Mohawk. «Like Mohawk, the Fedrigoni Group is focused on expanding the market for speciality papers. Like Mohawk, the Fedrigoni Group is focused on expanding the specialty papers market. Our partnership will allow us to continue our commitment and focus on the development of increasingly high-performing, innovative, and sustainable solutions».
A further strategic match is related to the Crane and Fabriano brands, which develop products for art and design. The two brands will actively participate in this new collaboration and explore mutually all possible opportunities for growth.