Sofidel has finalized the acquisition of assets belonging to Royal Interco, LLC further reinforcing its industrial presence in the North American market.
The agreement, initially announced on April 9, 2025, has now been completed following the fulfillment of all required approvals and closing conditions. The transaction was structured through an Asset Purchase Agreement (APA), based on a “stalking horse” offer.
The acquisition brings four new production facilities under Sofidel’s ownership: a paper mill in Gila Bend, Arizona, with an annual production capacity of 61,000 tonnes, two converting plants in Phoenix, Arizona, and a converting plant in Duncan, South Carolina.
“This marks another key milestone in our North American growth journey,” commented Luigi Lazzareschi, CEO of Sofidel. “The strategic location of these assets—particularly the three sites in Arizona—significantly strengthens our footprint in the western United States. This improves our service capabilities, reduces delivery times, and optimizes logistics efficiency.”
Steve Schoembs, CEO of Royal Paper, added: “The Royal Paper team, with 35 years of experience in the U.S. tissue industry, is excited to join the Sofidel family to serve customers and consumers even more effectively.”
Sofidel plans to offer employment opportunities to a significant portion of Royal Paper’s workforce, helping ensure operational continuity and laying the groundwork for future shared growth.
With this acquisition, Sofidel now operates 15 facilities across the United States—a market that today accounts for 50% of the Group’s total revenue. Ongoing expansion projects in Duluth, Minnesota, and Circleville, Ohio, continue to support the company’s broader development strategy. In Duluth, work is underway on new buildings to house converting lines and an automated warehouse, while in Circleville, a third tissue machine with a 70,000-tonne annual capacity will soon come online.