German industrial investor Quantum Group has acquired Spanish newsprint producer Papresa.
Following the acquisition, Quantum will seek to grow the company’s presence in the market for fluting paper for packaging.
Quantum will maintain Papresa’s workforce, expand its current product offering, promote the internationalization of the Spanish company towards the Asian market and establish its own sales network in Europe.
The change in strategy is due to the significant drop in global demand for newsprint paper throughout the last five years (-6% p.a.).
Consequently, the plan is to enter new markets such as packaging paper, which is increasingly used by the e-commerce industry, for example, to reduce the use of plastic and improve the environmental sustainability of packaging.
In 2019, Papresa, currently the eighth largest paper producer in Spain, generated a total turnover of €140m with an EBITDA of €21m. The company, based in Rentería, Gipuzkoa, employs 222 people and currently has the capacity to process 375,000 tons of paper per year, a figure that Quantum plans to increase.
Quantum was advised by Fieldfisher (legal), Marlborough (financing) and AON (insurance) on the deal, while Alantra and Pöyry served as corporate advisors to the seller.
Quantum has experience of industrial transformations in the Iberian paper sector. In 2015, the Quantum Group acquired Stora Enso’s recycled paper subsidiary and transformed it into Barcelona Cartonboard. According to Quantum: “Within three and a half years, after heavily investing in new machinery, products and sales force, the company was turned around from a negative EBITDA of €3.5m to a positive EBTIDA of €8m. Barcelona Cartonboard was later acquired by Reno de Medici.”
Quantum Capital Partners is manager of funds that invests in companies across Western Europe that are “in need of active management by the new owner”. Quantum’s operations are managed through its Munich headquarters, as well as its offices in Milan and Madrid.
Since its inception in 2008, the Quantum Group has acquired a variety of businesses from world-leading companies such as Nestlé, Bosch, Henkel, Siemens, Honeywell, Airbus, Arconic, Norsk Hydro, Eaton, BASF and Stora Enso for industrial transformation, operational improvement and strategic repositioning. It has completed 29 acquisitions since 2014.
Quantum’s portfolio currently comprises 21 companies in eight European countries (Germany, Austria, Switzerland, France, Italy, United Kingdom, Portugal and Spain). Jointly, Quantum Group companies employ more than 8,500 people and generate a combined annual turnover of approx. €2bn.
Quantum is led by CEO Steffen Görig.