The acquisition will optimise the product mix between Schades and R+S Group and improve operational efficiency of the group's converting business in Europe, says Hansol Paper.
Hansol Paper announced it had entered into a share purchase agreement to acquire the entire share capital of Germany's thermal paper converter R+S Group. According to South Korea's paper manufacturer, R+S Group will continue to operate as a separate company after the closing of the transaction. Financial terms of the deal were not disclosed.
The proposed acquisition of R+S Group by Hansol Paper means further consolidation on the thermal paper market in Europe. In September 2013, Hansol Paper had acquired Schades, a Denmark-based company with a leading position in the markets for thermal paper products and self-adhesive labels.
Hansol Paper's CEO Sang-Hun Lee expects the R+S group deal to improve the operational efficiency of the company's converting business in Europe through scale of economy and optimal product mix between Schades and R+S. "With the newly acquired machines and facilities of R+S, we will make sure to achieve the operational excellence throughout our European business footprints and maximize synergies among them so that we can better serve our customers with more reliable products and services", he said.
After the acquisition of R+S, the entire converting paper converting group at Hansol Paper, including Schades and the Dutch self-adhesive labels producer Telrol, would reach annual converting capacities of more than 1.4 billion m² of paper and generate annual sales of €170m, the South Korean company said in its press release on 17 August.