The Europac Group (Papeles y Cartones de Europa S.A.) has purchased two companies that collectively own a comprehensive packaging plant in the town of Lucena, in Cordoba. The operation cost 9.8 million euros, company value, representing a post merger value of 5.5 times EBITDA for Europac.
In 2016, the plant produced 16 million m2 of cardboard, turned over 7.6 million euros and generated an EBITDA of 1.2 million euros, representing a margin of 15.8%.
The operation cost 9.8 million euros, company value, representing a post merger value of 5.5 times EBITDA for Europac
Europac will gradually implement a ten-million euro investment plan to expand its facilities, increase production, purchase new assets and optimise current assets.
WIth this purchase, Europac now has a presence in Andalusia, which is an attractive market with strategic sectors, such as agriculture and food
Up until now, shares in the business were distributed among ICOA (Industrias Cartones Ondulados Andaluces S.L.) and OASA (Ondulados Andaluces, S.A.), two companies dedicated to manufacturing corrugated cardboard and using cardboard for packaging.
The new facility, which will now be called Europac Packaging Lucena, turned over 7.6 million euros and generated an EBITDA of 1.2 million euros at the end of 2016, which represents an EBITDA margin of 15.8%. At the moment, the plant has one corrugator and three converters to turn cardboard into boxes, in a 15,000m2 warehouse, within a 42,000m2 plot of land. Last year it used 7,000 tonnes of paper and produced 16 million m2 of cardboard and packaging.
The Europac Group will carry out a ten-million euro investment plan with the aim of increasing production, purchasing new assets, optimising the current assets and expanding the installations. It is expected that during the investment period, 25 direct new jobs will be created.
